Spot Ethereum ETF’s Future Hangs in Balance as Approval Likelihood Drops
Highlights
- The probability that an Ethereum spot ETF will be approved in May has been drastically reduced.
- Issuers and custodians have been aggressively pressuring the SEC staff to move the process forward more quickly in recent meetings.
- At the time of writing. ETH prices hit $4,043.73, being up over 3% as compared to the same time last day.
Spot Ethereum ETF will have a key judgment in May with the SEC deciding upon the approval. However, with prevailing uncertainty, the market has started lowering the approval chances. Notably, the SEC took over a decade to approve the Bitcoin ETFs.
SEC Silent on Spot Ethereum ETF Applications
The probability that an Ethereum spot ETF will be approved in May has been drastically reduced by Bloomberg ETF expert Eric Balchunas, from 60–70% to 30%. The decline in optimism comes at a time when the market is not very happy with how the SEC has responded to Ethereum ETF applications. The SEC has shown unwanted silence and no engagement with the Ethereum ETF applications, making the market confused about what its decision will be.
Previously, Eleanor Terret, a journalist for Fox Business, reported that there is less hope now that the U.S. Securities and Exchange Commission would approve spot Ethereum ETFs before May 23rd.
Speaking with informed people, it appears that issuers and custodians have been aggressively pressuring the SEC staff to move the process forward more quickly in recent meetings, which have been essentially one-sided. However, in contrast to how they handled spot Bitcoin ETF applications, it appears that the SEC staff has not been as receptive or involved in substantive conversations.
Read Also: Ethereum Dencun Upgrade: Here’s Projected Cost on L2s Post-Launch
ETH Prices Right Now
Despite occasional price declines, economists are certain that the Ethereum boom will continue and even accelerate. According to reports, analysts predict that Ethereum will rise by at least 25% more, to $5,000. It will be interesting to observe, nevertheless, how the bulls maintain their momentum following the Dencun Upgrade.
At the time of writing. ETH prices hit $4,043.73, being up over 3% as compared to the same time last day. The 24-hour trading volume of the second biggest cryptocurrency stood at $28.1 billion, up nearly 98%. An important trend to notice before the decision on spot Ethereum ETFs will be how the market and price react to speculations.
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