Ethereum Spot ETFs Unlikely To Get Green Light In May: Tron Founder

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As a crypto investor with some experience under my belt, I share Justin Sun’s sentiment that an Ethereum ETF may not be approved in May by the SEC. The ongoing regulatory uncertainty surrounding these products is disheartening, especially after the optimistic start of the year.

The anticipation surrounding the approval of Ethereum Spot Exchange-Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC) has been waning. Justin Sun, founder of the Tron network, has shared his view on the regulatory prospects for an Ethereum Spot ETF, suggesting that it’s unlikely that approval will be granted before the May deadline.

Uncertainty Around Ethereum Spot ETFs 

This year, there was great anticipation within the cryptocurrency sector regarding the potential approval of Ethereum-based spot Exchange Traded Funds (ETFs) by the Securities and Exchange Commission (SEC). However, as the decision date of May 23 draws nearer, a growing sense of apprehension has emerged among industry insiders, indicating that SEC approval may not be forthcoming.

Justin Sun, the founder of Tron, expresses pessimism about the approval of ETH Exchange-Traded Funds (ETFs) by the Securities and Exchange Commission (SEC) in the upcoming month. He believes that the crypto industry must continue its efforts to educate regulators on digital currencies, despite believing that significant progress has already been made in this area.

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In my unbiased viewpoint (NFA), an Ethereum ETF is unlikely to receive approval in May. The crypto sector must continue its efforts to educate regulators about digital currencies, focusing on clarifying complex concepts and addressing concerns. We’ve been navigating this terrain together for some time now.

As a researcher studying the cryptocurrency market, I’ve noticed that the Sun isn’t the only voice raising concerns about the regulatory approval of spot products. Last week, Nate Geraci, President of the ETF Store, shared his perspective on the potential rejection of these products by the Securities and Exchange Commission (SEC). According to him, the SEC’s decreased engagement with Ethereum spot ETF applicants is a significant factor in this decision.

Geraci raises the logical argument that the commission’s decision on the spot Ethereum ETFs aligns with reason, yet he ponders if they learned from the chaotic history of Spot Bitcoin ETF applications. The president outlines two possible results for the approval process of these ETFs: either a green light from the commission or legal intervention.

Spot ETH ETFs Approval Odds Plummets

As a researcher studying the developments in the cryptocurrency market, I’ve observed a noteworthy shift in the prospects of approving a Spot Ethereum Exchange-Traded Fund (ETF). Following the initial request for such a product, the likelihood of its approval by May has noticeably dwindled. According to recent data from Polymarket, a decentralized prediction market platform, the chances now stand at approximately 11%.

Additionally, according to Eric Balchunas, an analyst at Bloomberg Intelligence, his estimation for the probability of approval for Ethereum spot ETFs has decreased from 70% in February to approximately 35% currently. He justifies this change due to several reasons that he believes make a strong case for the Securities and Exchange Commission (SEC) to approve these funds.

Despite the absence of the previous encouraging indicators and signs for the approval of Bitcoin spot ETFs within a 2.5-month timeframe, Balchchunas remains optimistic about their eventual acceptance. Though the chances have dwindled before the May deadline, he is convinced that they will eventually gain approval in the long term.

Ethereum Spot ETFs Unlikely To Get Green Light In May: Tron Founder

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2024-04-29 15:11