The US Securities and Exchange Commission's (SEC) approval of spot Ethereum exchange-traded funds (ETFs) on May 23 was a significant milestone, but the journey to actual trading in US markets is far from over. With eight funds' individual S-1 filings still awaiting approval, the launch date remains uncertain, casting a shadow over Ether's price performance.

As investors grapple with the unknown, Ether's price struggles to break through the $3,900 resistance level. The answer to this conundrum may lie in Ether's futures markets, where traders are debating whether bullish bets are being placed or if the spot ETF's delayed launch is artificially suppressing the price.

Adding to the uncertainty is the impending conversion of the Grayscale Ethereum Trust (ETHE) into a spot instrument. If the fund administrator maintains its high fees, it could lead to outflows similar to Grayscale's GBTC, offsetting inflows from competitors like BlackRock, Fidelity, VanEck, and ARK 21Shares.

Some analysts believe the SEC's approval was influenced by political pressure from Democrats to appeal to swing voters in the upcoming US Presidential election. However, others argue that the SEC recognized the regulatory similarities between Ethereum and Bitcoin ETFs, opting for a pragmatic approach to avoid a legal battle.

The mixed signals in the crypto market, including President Joe Biden's veto of a Congressional resolution aimed at repealing the SEC's SAB 121 guidance, have raised concerns about the regulatory environment for cryptocurrencies. As traders navigate this uncertain landscape, the future of Ethereum remains a topic of debate. Will the spot ETFs bring much-needed clarity, or will the futures markets dictate the price of Ether? Only time will tell.