Bloomberg: SEC May Reject Ethereum Spot ETF Approval in May
There are currently no signs indicating that the SEC will give the green light to an Ethereum spot ETF, unlike the approval seen with Bitcoin ETFs earlier.
Bloomberg: SEC May Reject Ethereum Spot ETF Approval in May. Image: Forbes
Bloomberg analyst James Seyffart suggests that the U.S. Securities and Exchange Commission (SEC) is unlikely to approve an Ethereum spot ETF in May.
Previously, another analyst at the publication, Eric Balchunas, predicted a reduced probability of an Ethereum spot ETF, lowering the odds to just 35%. This contrasts with their earlier estimates of 60-70% at the beginning of the year.
According to analysts, the likelihood of an Ethereum spot ETF has significantly diminished, as U.S. regulators have not shown any positive signals or clear direction regarding this type of portfolio exchange.
James Seyffart wrote on X:
"At this point, we believe the Ethereum spot ETF will be rejected on May 23."
Should add. These were always going to be delay orders. The only deadline that matters is May 23rd. This has always been the case: https://t.co/4EfbTidiXc
— James Seyffart (@JSeyff) March 19, 2024
Seyffart anticipates a different outcome for this Ethereum spot ETF, noting that the SEC has had minimal discussions with organizations seeking to launch this product, unlike the process for Bitcoin ETFs.
The SEC has postponed decisions on the Hashdex and Ark 21 Shares Ethereum spot ETFs to May 30 and May 24, respectively. The SEC stated that it would be appropriate to specify a longer period for issuing an order approving or disapproving the proposed rule change to allow…
— Wu Blockchain (@WuBlockchain) March 20, 2024
ETH prices have dropped nearly 20% over the past week and are currently trading around $3,205 USD.
1D chart for ETH/USDT pair on Binance at 09:20 AM on March 20, 2024
As reported by Coin68, the U.S. Securities and Exchange Commission postponed the proposal for BlackRock and Fidelity's Ethereum spot ETFs in early March. At that time, the SEC requested public opinion on whether ETH's Proof-of-Stake could increase "concerns about susceptibility to fraud and manipulation."
Today, the SEC further delayed the decision on Hashdex and Ark 21Shares' Ethereum spot ETF proposal. According to the latest announcement, the SEC will extend the deadline for these two applications until May 30, 2024.
Currently, the race for an Ethereum spot ETF involves seven major Wall Street players including BlackRock, Fidelity, Invesco - Galaxy, Grayscale, VanEck, 21Shares - Ark, and Hashdex. The final decision deadline for the SEC is May 23, 2024.
Proposed Ethereum spot ETFs under consideration by the SEC. Image: Bloomberg
In recent statements, SEC Chairman Gary Gensler has been vague about the prospects of approving an Ethereum spot ETF. Gensler noted that the new commission only accepted ETFs for Bitcoin because it has been proven not to be a security, unlike other cryptocurrencies.
