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

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

-


Expectations that the highly anticipated Ethereum Spot Exchange-Traded Funds (ETFs) will be approved by the United States Securities and Exchange Commission (SEC) have continued to drop. In this regard, Justin Sun, founder of the Tron network, has made a significant prediction on the regulatory chances of Spot Ethereum ETF, indicating that it is unlikely that the approval will come through by the May deadline.

Uncertainty Around Ethereum Spot ETFs 

Early this year, the cryptocurrency industry was optimistic about the Ethereum spot ETFs, but as the decision date of May 23 approaches, there seems to be rising pessimism about the SEC approving the products.

Tron founder, Justin Sun, seems certain that the spot ETH ETFs will not be approved by the SEC in the following month, expressing negative sentiment. According to Sun, in order to assist authorities and regulators in understanding cryptocurrency, the crypto industry still needs to get ready for a lengthy education process, even though he thinks the industry has already been here.

The post read:

My honest opinion (NFA) is that an Ethereum ETF won’t be approved in May. The crypto industry still needs to prepare for a long-term education with regulators, focusing on helping them understand crypto. But we have always been here, haven’t we?

Sun is not the only popular figure in the crypto space that has recently expressed doubt about the spot products getting a green light from the regulatory watchdog. Last week, the President of the ETF store, Nate Geraci hinted that the products might not be accepted because of the SEC’s much-reduced involvement with ETH spot ETF issuers in comparison to prior interactions.

While Geraci believes that this is correct logically, he also wonders if the Commission took a lesson from the clown show with Spot Bitcoin ETFs. However, the president has identified two potential outcomes for the spot ETH ETFs, which include Commission clearance or legal action. 

Spot ETH ETFs Approval Odds Plummets

Since the request for a spot ETH ETF arose, the likelihood that the exchange funds will be approved in May has gotten thinner. Data from Polymarket, a decentralized prediction market platform, shows that the chances of acceptance are now estimated at 11%. When the Spot ETFs for Bitcoin were approved on January 10, the odds were measured at 76%, suggesting a significant decrease over time.

Also, Bloomberg Intelligence analyst Eric Balchunas has put his approval odds around 35%, which is a drop from his initial prediction of 70% in February. The Bloomberg expert indicated that he believes the Commission should approve the spot ETH ETFs for several reasons.

However, this time, none of the sources or signs that provided him with an optimistic 2.5-month prognosis for Bitcoin spot ETFs are present. Even though Balchunas’ odds toward the May deadline have decreased, he believes the spot products are likely to get accepted in the long term.

ETH trading at $3,176 on the 1D chart | Source: ETHUSDT on Tradingview.com

Featured image from iStock, chart from Tradingview.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POSTS

Iconic Dogecoin Mascot And Meme Legend Kabosu, A Shiba Inu Dog, Passes Away In Japan

Join Our Telegram channel to stay up to date on breaking news coverage Kabosu, the legendary Shiba Inu dog who became the face of meme...

Why Analysts Are Bullish on SoundHound’s Long-Term Growth Potential

The enthusiasm surrounding SoundHound AI, Inc. (SOUN) is palpable. With solid revenue growth and strategic collaborations underlining its long-term potential, the stock has gained...

May 2024 Newsletter for All Things BitPay & Crypto

Welcome to the latest...

Malta Wants Piece of Artificial Intelligence (AI) Hype

This is not Malta’s first time capitalizing on tech trends but the current wide deployment of AI technology is to tackle existential challenges including...

Most Popular