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This delay comes months after the regulator approved several Bitcoin ETF options. These products are crucial for boosting institutional adoption around Ethereum, given that spot ETH ETFs have already attracted nearly $10 billion in net assets, equivalent to 3% of Ethereum’s market capitalization.
New SEC to likely give greenlight
According to Bloomberg ETF analyst Eric Balchunas, the approval of Ethereum ETF options was likely delayed until the new SEC Chair, Paul Atkins, takes over. Following Gary Gensler’s resignation last month, Mark Uyeda was appointed to head the regulatory agency in an acting capacity.
Per Balchunas, the pending approvals for submitted filings with the SEC will likely be done under Atkins’ leadership.
“SEC punting on spot Ether ETF options. I wouldn’t read too much into it, can’t imagine they don’t get approved eventually, likely waiting until Atkins is confirmed before moving on stuff,” the analyst stated.
 
The President of ETF Store, Nate Geraci, also noted that while it was only “a matter of time” before these products were approved, they would change how they operated. One of these changes is the leverage options.
“It is noteworthy that the SEC allows people to trade options on 2x leveraged ETH ETFs… Good news is that I expect the new SEC to put a stop to these types of inconsistencies,” he stated.
Following Gensler’s resignation and the appointment of a crypto-friendly SEC Chair, the crypto community is hopeful that more crypto ETFs will enter the market. Besides the ETH options, the other submitted filings include XRP, Dogecoin, Solana, and Litecoin ETFs.
Ethereum Profitability Drops
Despite the optimism around the approval of ETH ETF options, the Ethereum process has continued to struggle under bearish pressure. Moreover, the drop below $3,000 caused a notable decline in wallet profitability.
According to Santiment, the percentage of ETH wallets in profits has dropped to the lowest level in more than four months. However, there could be a bounce in performance once the broader market stabilizes.
