The approval of spot exchange-traded funds (ETFs) based on Ethereum is facing uncertainty due to resistance from the U.S. Securities and Exchange Commission (SEC). Eleanor Terrett, a Fox business journalist, sheds light on the diverse expectations and assumptions associated with the SEC's stance, highlighting key issues and various perspectives on the matter.

Terrett reports a 'decisive no' from the SEC, indicating internal resistance to the approval of Ethereum spot ETFs. She also mentions SEC Commissioner Hester Peirce, known for her support of cryptocurrencies, who advocates for simplifying the decision-making process and criticizes the reliance on court decisions for ETF approvals.

Despite the SEC's resistance, optimism remains among asset managers like BlackRock. Their experience in ETF approvals inspires hope for the approval of Ethereum ETFs by this summer. BlackRock expresses confidence, citing the successful launch of Bitcoin spots as a potential catalyst for the approval of Ethereum spot ETFs.

Terrett expects further exploration of the SEC's position in the coming months, particularly in relation to interactions with S-1 registration forms. Expectations regarding Ethereum spot ETFs vary: Bloomberg ETF analyst Eric Balchunas suggests a 70% chance of approval in May, while Nikolaos Panigirtzoglou from JP Morgan predicts a 50% chance.

JP Morgan analysts, led by Panigirtzoglou, maintain caution, assessing the likelihood of approval at no more than 50%. Regulatory and legal considerations, as well as uncertainty over Ethereum's classification as a commodity or security, reinforce their skepticism.

The recent delay by the SEC in deciding on Fidelity's Ethereum spot ETF until March 5, 2024, extends the evaluation period. The final decision on the Ethereum spot ETF is expected between late January and August 2024. The approval of Ethereum spot ETFs remains uncertain due to conflicting signals from the SEC, varying expert expectations, and ongoing regulatory uncertainty.