Expectations that the much awaited Ethereum Spot Exchange Traded Fund (ETF)) will be approved by the United States Securities and Exchange Commission (SEC) continued to decline. In this regard, Justin Sun, founder of the Tron network, took an important step prediction on the regulatory chances of the Spot Ethereum ETF, indicating that approval is unlikely to be achieved before the May deadline.
Uncertainty around Ethereum Spot ETFs
Earlier this year, the cryptocurrency industry was optimistic about Ethereum spot ETFs, but as the May 23 decision date approaches, there appears to be growing pessimism about the products being approved by the SEC.
Founder of Tron, Justin Sun, It seems certain that spot ETH ETFs will not be approved by the SEC in the following month, expressing negative sentiment. According to Sun, in order to help authorities and regulators understand cryptocurrency, the crypto industry still needs to prepare for a long education process, although he believes the industry is already there.
The message said:
My honest opinion (NFA) is that an Ethereum ETF will not be approved in May. The crypto industry still needs to prepare for long-term training with regulators, focusing on helping them understand crypto. But we’ve always been here, haven’t we?
Sun is not the only popular figure in the crypto space to have recently expressed doubts about spot products getting the green light from the regulatory watchdog. Last week, ETF Store President Nate Geraci hinted that the products might not be accepted due to the SEC’s very reduced involvement with ETH spot ETF issuers compared to previous interactions.
While Geraci believes this is logically correct, he also questions whether the Commission has learned a lesson from the Spot Bitcoin ETF clown show. However, the President identified two potential outcomes for spot ETH ETFs, including Commission authorization or legal action.
Spot ETH ETFs Approval Odds Drop
Since the request for a spot ETH ETF was made, the likelihood of exchange funds being approved in May has reduced. Data from Polymarket, a decentralized prediction market platform, shows that the chance of acceptance is now estimated at 11%. When Spot ETFs for Bitcoin were approved on January 10, the odds were measured at 76%, suggesting a significant decline over time.
Additionally, Bloomberg Intelligence analyst Eric Balchunas put its probability of approval at around 35%, down from his initial forecast of 70% in February. The Bloomberg expert indicated that he believes the Commission should approve spot ETH ETFs for several reasons.
However, this time, none of the sources or signs that provided him with an optimistic prognosis at 2.5 months for Bitcoin Spot ETF are here. Although Balchunas’ chances of reaching the May deadline have diminished, he believes spot products will likely be accepted in the long term.
Featured image from iStock, chart from Tradingview.com
