Spot Ethereum ETF: Tron Founder Shares Take On Approval Possibilities

Having delayed approval for spot Ethereum ETFs till this time, Tron founder Justin Sun does not think the United States Securities and Exchange Commission (SEC) would positively consider the multiple applications for the product.

SEC Needs to be Educated on Crypto

Sun shared his “honest opinion” on X, stating that a spot Ethereum ETF will not be approved in May as expected. His subsequent statements suggest that the approval delay or potential rejection of the spot Ethereum ETF applications is due to a bridge in knowledge on the part of the market regulator. 

“The crypto industry still needs to prepare for a long-term education with regulators, focusing on helping them understand crypto,” Tron’s founder said. “But we’ve always been here, haven’t we?”

His post comes amidst a long wait for the SEC to make a decision on the offering. It’s been more than six months since some early spot ETH ETF applicants submitted their bids to the securities regulator. The SEC set a deadline of May 24, 2024 to conclude its review of ARK Invest’s spot Ethereum ETF. So far, it has delayed ETH ETF applications from big players like BlackRock, Fidelity, and many others.

Only last week, the Commission postponed its decision on the approval of Franklin Templeton’s spot Ethereum ETF and set a new extension for June 11, 2024. Around the same time, it made a public call for comments concerning the recent amendments to BlackRock’s proposed spot Ethereum ETF, the iShares Ethereum Trust. 

This indecision has casted a shadow on the crypto industry as they now doubt the possibility of ever getting approval. 

Spot Ethereum ETF Applicants Are Pessimistic

There are other industry voices who share the same stance as Sun on the matter. During Paris Blockchain Week crypto event, VanEck CEO Jan Van Eck hinted at his dwindling optimism towards the spot ETH ETF approval. He speculated that his firm and Cathie Wood’s ARK Invest may be first in line “to probably be rejected.”

Speaking of the Ethereum ETFs, CoinShares CEO Jean-Marie Mognetti said “I don’t see anything being approved this side of the year.” 

In a recent Reuters report that was related by Coingape, it was stated that the issuers of these spot Ethereum ETFs and other firms are already looking forward to denial of their applications in May by the U.S. SEC after several bad meetings that they’ve had.

Markedly, all of these dispositions are fueled by the SEC’s intense effort to classify Ethereum as security.