The abrupt withdrawal by VanEck and ProShares of their applications for the creation of an Ethereum ETF increases the chances of a Bitcoin ETF being approved, Bloomberg analyst James Seyffart said.
VanEck and ProShares withdrew their applications for the creation of Ether-linked funds just two days after filing. According to Seyffart, this behavior suggests the US Securities and Exchange Commission (SEC) has contacted them to inform them that these are unlikely to be approved.
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At the same time, the companies have two active applications to launch Bitcoin ETFs. According to the analyst, at least one Bitcoin ETF will be approved in the fourth quarter, possibly as early as October.
Seyffart expects the SEC to approve the Ethereum ETF in the future, however, several conditions must be met for this. First, the Bitcoin ETF should demonstrate its solvency and, second, trading volumes and open interest in ETH futures contracts should increase.