Ether ETF only in a few years?

While the ETH-price climbs above the $3,000 mark, one expert warns that it could be a long time before an ether ETF is launched.

Major U.S. asset managers such as Fidelity and BlackRock have applied in recent months for an Ether ETF. Some optimistic analysts have already predicted that the US Securities and Exchange Commission (SEC) could approve the new ETH funds as early as May this year.

However, Valkyrie CIO Steven McClurg is now warning against high prediction. According to him, the SEC is unlikely to approve an Ether ETF anytime soon, but rather over the next one to two years.

In a interview with TheBlock, McClurg emphasized that much effort has already gone into the introduction of Bitcoin spot ETFs, both by regulators and the various issuers. Compared to Bitcoin, however, there are some key differences in Ethereum products.

Some applications for an Ether spot ETF include a staking component. However, according to McClurg, this interest-like offer would be difficult for customers to withdraw without classifying Ether as a security.

The classification of Ether as a security or a commodity is currently under debate. SEC-chairman Gary Gensler has not yet commented directly on whether the second-largest cryptocurrency is subject to securities laws.

This is yet another reason why the SEC could take a long time to reach a decision. Meanwhile, the market seems to be assuming that the ETFs will be approved sooner, as the ETH price has been strong recently, heading toward $3,100.

Recently advised Coinbase the SEC in a 27-page letter to convert the Grayscale Ethereum Trust into a lower-cost ETF. As has already happened with Bitcoin, exchange-traded ether funds could facilitate access for institutional investors in particular.