Spot ETH ETF Approval in Doubt
It appears that the hope for the approval of Ethereum spot Exchange-Traded Funds (ETFs) by the Securities and Exchange Commission (SEC) is fading as the May deadline approaches. Justin Sun, the founder of the Tron network, has recently made a prediction that casts doubt on the likelihood of approval by the regulatory body before the deadline.
Justin Sun’s Prediction
Sun believes that the chances of Spot Ethereum ETFs being approved by the SEC by the May deadline are slim. He expressed this sentiment in a recent post, indicating that the cryptocurrency industry still needs to educate authorities and regulators more on cryptocurrencies. Despite the industry’s efforts in this regard, Sun believes there is still a long way to go in terms of understanding.
- Sun predicts that the approval of an Ethereum ETF by the SEC in May is unlikely.
- He emphasizes the need for the crypto industry to continue educating regulators about crypto.
- There is a suggestion that regulators need more time and information to understand the intricacies of the cryptocurrency market.
Other Doubts in the Industry
Justin Sun is not the only prominent voice in the crypto industry expressing skepticism about the approval of spot ETH ETFs. Nate Geraci, the President of the ETF Store, has also hinted at the unlikelihood of approval due to reduced interaction between the SEC and ETH spot ETF issuers.
- Nate Geraci believes that the SEC’s decreased involvement with ETH spot ETF issuers may hinder approval.
- He questions whether the SEC has learned from its previous experiences, especially with Spot Bitcoin ETFs.
- Geraci outlines two possible outcomes for the spot ETH ETFs: clearance by the Commission or legal action.
Declining Approval Odds
As the decision date for Ethereum spot ETFs draws nearer, the odds of approval have significantly decreased. Data from Polymarket indicates that the chances of approval stand at a mere 11%, a stark drop from the initial optimism in the market. Similarly, Bloomberg Intelligence analyst Eric Balchunas has revised his approval odds downwards, now estimating approval at 35%.
- Polymarket data shows approval odds for spot Ethereum ETFs at 11%, a sharp decline from initial estimates.
- Eric Balchunas, a Bloomberg expert, now predicts a 35% chance of approval, down from his earlier forecast of 70%.
- While the immediate prospects for approval look bleak, long-term acceptance of spot ETH ETFs is still anticipated.
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