With the arrival of the spot Bitcoin ETF, the market focus has shifted to the spot Ethereum, with its final approval deadline set for May 23rd. However, skeptics of the spot Ethereum ETF approval exist, with analysts from JPMorgan and others considering its approval chances to be relatively low. While the SEC set a precedent by approving the spot Bitcoin ETF, the spot Ethereum ETF faces different challenges. Legal precedents, such as the finding that XRP does not meet the Howey test, offer some hope for the spot Ethereum ETF. However, clarity from the SEC regarding Ethereum is still awaited. Although the approval of the spot Ethereum ETF may have a long-term bullish impact, there is also the possibility of a "sell the news" scenario. Disappointing demand for the Ethereum futures ETF earlier suggests insufficient future demand for spot products. Issuers need to attract organic demand to ensure success.
