The U.S. Securities and Exchange Commission (SEC) has postponed its verdict on approving several spot Ethereum exchange-traded funds (ETFs), prompting speculation across the cryptocurrency industry.

However, according to Bitwise Chief Investment Officer (CIO) Matt Hougan, this delay might present an opportunity for Ethereum ETFs to flourish.

In an interview with Forbes, Hougan expressed his belief that the asset management sector’s current fixation on spot Bitcoin products could hinder the potential success of Ethereum ETFs in the market.

He suggested that allowing more time for traditional finance (TradFi) to acclimate to Bitcoin and crypto could pave the way for a more favorable reception to Ethereum ETFs.

“I think the [Ethereum] ETFs will be more successful if they launch in 12 months than if they launch in May. I know that sounds goofy, but I think TradFi is still digesting Bitcoin and if you give TradFi time to get comfortable with Bitcoin and crypto, they will be ready for the next thing,” Hougan remarked.

However, the SEC’s postponement of decision timelines for several applicants has dampened industry optimism regarding potential approvals in May.

Bloomberg ETF analysts have downgraded the likelihood of an Ether ETF approval in May from 70% at the year’s outset to a mere 35%.

Concerns have escalated further amidst reports of the SEC scrutinizing the Ethereum Foundation and considering Ether’s classification as a security.

Despite these apprehensions, BlackRock CEO Larry Fink remains unconvinced that Ether’s potential classification as a security would impede an ETF’s ultimate approval. In an interview with Fox Business, Fink dismissed concerns, suggesting they wouldn’t be detrimental.