The spot Bitcoin exchange-traded fund (ETF) obtained approval earlier this month. Now with Bitcoin being more accessible to the general public, investors are hopeful that the cryptocurrency can continue to build on the gains it has accumulated in recent months.

And it may not be too long before another popular cryptocurrency follows in its footsteps. Ethereum (CRYPTO: ETH) may soon have its own spot ETF coming.

A DECISION ON ETHEREUM COULD COME AS EARLY AS MAY

Now that the spot Bitcoin ETF has obtained approval, crypto enthusiasts turn to what may seem like an inevitability: The approval of a spot Ethereum ETF.

Ethereum is the second most popular cryptocurrency with a market cap of $305 billion, which is less than half of Bitcoin's value of $843 billion.

Multiple companies have made applications for a spot Ether ETF, including BlackRock and Ark. The Securities and Exchange Commission (SEC) is expected to make a decision by May.

Ethereum's value has been rising over the past year along with Bitcoin, as enthusiasm for greater acceptance of crypto is generally a good sign for both digital currencies. Investors were buying up Bitcoin in anticipation of an expected approval of the spot Bitcoin ETF, and the same may be happening with Ethereum as well, as its value has also been spiking in recent weeks.

WHY APPROVAL MAY NOT COME UNTIL MUCH LATER

While there is excitement that a spot Ethereum ETF may soon be available as well, not everyone is convinced that is a sure thing. According to TD Cowen, an approval is unlikely to happen by May. And it may not even happen until after the U.S. federal election.

The rationale for this is that the investment bank believes that "the SEC will want to gain experience from Bitcoin" before it approves another token, whether it is for Ethereum or any other coin.

INVESTORS SHOULDN'T BE CONCERNED

Bitcoin and Ethereum are the two big names in crypto, and their trajectories have been fairly similar over the past year, as both have moved in similar directions. While Bitcoin has generated the stronger returns due to its recent approval, a spot Ethereum approval may not be too far away, either. Whether it happens in May or even next year, it would appear unlikely for regulators to only approve one of the major cryptocurrencies and no others.

The SEC took its time (more than two years) in approving a spot Bitcoin ETF. So if it takes a bit of time in analyzing the rollout before approving the spot Ethereum ETF, that may not be all that surprising. What's important is that investors factor this into their expectations and not get their hopes up too high in May, in case the spot Ethereum ETF approval doesn't come through.

IS NOW A GOOD TIME TO INVEST IN ETHEREUM ?

If you're bullish on crypto, now may be a good time to add some exposure to Ethereum. Even if it takes a little longer than expected, approval of a spot Ethereum ETF looks highly probable. And with Ethereum's gains lagging behind Bitcoin over the past year, there could be more potential upside for the cryptocurrency once the approval takes place.

There is the risk of volatility, as is always the case with any cryptocurrency, but with regulators taking a more positive view of digital currencies and approving a spot Bitcoin ETF, the outlook is as promising as ever for crypto. As long as you're OK with the risk that comes with it, now may be an optimal time to buy Ether.

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