Web3 executive suggests that the lack of institutional readiness could cause a postponement of Ether ETFs.

Spot Ether exchange-traded funds (ETFs) may face a delay in approval beyond the May deadline, as major financial institutions are unprepared to position themselves for approval, according to Robby Greenfield, CEO of Umoja, a smart money protocol. Companies such as BlackRock, Grayscale, Fidelity, ARK 21Shares, Invesco Galaxy, VanEck, Hashdex, and Franklin Templeton are competing for an Ether (ETH) ETF. Bloomberg ETF analyst James Seyffart predicts that the current Ether ETF applications will be rejected in late May, as reported in a post on March 19. The US Securities and Exchange Commission (SEC) has postponed its decision on the Hashdex and ARK 21Shares spot Ether ETFs, with a final decision expected in late May. Due to the decentralized nature of cryptocurrencies like Ether, developing institutional strategies for ETFs is more challenging. However, Greenfield believes that the approval of Ether ETFs is inevitable, although there may be a delay. The SEC’s decisions on various ETF applications are scheduled for May and August. In addition to Ether ETFs, large institutional players are hesitant to invest in decentralized finance (DeFi) due to a lack of infrastructure, which also limits participation from traditional retail investors. Greenfield emphasizes the importance of enabling retail investors to access smart investment strategies, as they have historically had limited access to wealth management tools compared to institutions. Umoja has closed a $2 million extension to its initial seed funding round in order to provide wider retail access to asset management strategies. The World Economic Forum estimates that retail investors will account for 61% of global assets under management by 2030, up from 52% in 2021.