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As the days pass, a fear of Ethereum ETF rejection is building up among investors. The Ethereum Exchange Traded Funds (ETF) have been on hold and waiting for the SEC’s approval for months. With the successful approval of Bitcoin Spot ETF, the community had confidence in the Ethereum ETF, but that is breaking now.
Why Ethereum ETF Decision Pending For Months?
With the continuous silence from the SEC, May is the only hope for the investors as that’s the timeline set by the official to declare their answer. As the days shift towards that, the chances seem to fall even more. Earlier, it was said to be a done deal, but up to a few days back, that has changed to a 50% chance of approval.
The confusion about Ethereum being a security or commodity has led to this delay in the approval decision. The SEC has already cleared that Bitcoin is a commodity, but no similar announcements were made in the case of Ethereum.
Also Read: Top Crypto Gainers Of The Day
The recent news of the SEC investigating various cryptocurrency exchanges over the Ethereum designation between security and commodity seems concerning. This confusion is still drawing back the Ethereum ETF approval, although Gary Gensler back in 2018 associated Ethereum with the “Not a Security” tag.
Ethereum ETF Might Get Approval In May
As the communities have divided into two, where one side calls it a negative space and has lower chances of approval, the other side is waiting for the designated time of the answer.
On a positive note, Craig Salm, Grayscale’s chief legal officer, has said that he is expecting the Ethereum ETF approval as “Investors want and deserve access to #Ethereum in the form of a spot Ethereum ETF, and Grayscale believes the case is just as strong as it was for spot #Bitcoin ETFs. We look forward to engaging with the Commission on these important products. $ETHE”
Through an X post thread, he explained that during the time of Bitcoin ETF, the topic of Ethereum ETF also came forward and received a positive and constructive engagement from the SEC.
2/ In the final months leading up to #Bitcoin ETF approval, @Grayscale and others received positive and constructive engagement from the SEC. We had thoughtful conversations and discussed the finer details of creation/redemption procedures, cash v. in-kind, APs, LPs, custody etc.
— Craig Salm (@CraigSalm) March 25, 2024
Meanwhile, the Bloomberg analysts have reduced their 35% approval prediction to 25%. It’s because the bullish indicators that were present during the Bitcoin ETF approval are missing for the case of Ethereum.
This statement isn’t entirely true now, as the Ethereum price seems to have recovered from the recent bear attack and is targeting $4K or above.
James Seyffart, a well-known Bloomberg analyst, has earlier posted about the possibility of three more delays in this approval process.
We are likely going to see at least 3 more #ethereum ETF delays today/tomorrow.
VanEck, Ark/21Shares, Hashdex & Grayscale are all due for delays in the next ~12 days https://t.co/xsQEWWPrPR
— James Seyffart (@JSeyff) March 19, 2024
With all this chaos about Ethereum ETF, the negative news is taking over the crypto industry. But despite all this negative news, the 23 May date stays consistent for the final answer by the SEC.
Conclusion
SEC’s silence over the Ethereum ETF has made things challenging for the users. All kinds of news surrounding the community is eventually impacting the Ethereum price. With no new announcements about delays, the expected date for the SEC answer stays the same for the 23rd of May.
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