The U.S. Securities and Exchange Commission (SEC) is nearing a critical juncture in deciding the fate of Ethereum-based spot ETFs. The deadline for the SEC to approve or deny these ETFs is fast approaching, with May 23 being the final day for a filing by VanEck, which is seeking to launch an ETF holding Ether. Other prominent companies, such as Invesco, BlackRock, and Fidelity, are also in the running to launch similar funds.If the SEC were to favor ETFs, it would likely approve several applications simultaneously to avoid the appearance of favoritism.

This approach aligns with the SEC's actions in January when it approved 10 Bitcoin ETFs, which have since generated significant interest, raising a net $33 billion and driving Bitcoin prices to all-time highs.However, the road to approval for Ethereum-based ETFs may not be as smooth as it was for Bitcoin.

While some ETF applicant companies have engaged in discussions with the SEC, these conversations have been largely one-sided, with the agency yet to provide critical feedback necessary for companies to finalize their products.

This situation contrasts with the Bitcoin ETF process, where issuers were already in active dialogue with institutional staff at this stage.If the SEC does not make a decision on this group of Ethereum ETFs soon, the launch of the first ones could be delayed until 2025 or later. This delay could have significant implications for the cryptocurrency market, particularly for Ethereum, which is the world's second-largest cryptocurrency.