Within the cryptocurrency investment space, there has been much debate and speculation about the possibility of ethereum spot exchange-traded funds (ETFs). However, in light of current regulatory hurdles, Bloomberg Intelligence senior analyst Eric Balchunas has x.com/EricBalchunas/status/1788557660129738810″ target=”_blank” rel=”noopener nofollow”>Offered a gloomy view of the products, noting that the company is now more pessimistic than ever about the likelihood of the funds being approved by the US Securities and Exchange Commission (SEC).
ethereum Spot ETF Pessimism Prevails
Eric Balchunas' ideas came in response to Fizen CEO Leo Vu's post about Grayscale CEO Michael Sonneshein's optimism toward the approval of ethereum Spot ETF. According to Michael, he is very confident that the SEC will grant the company's request to convert its ethereum trust into a spot ETF.
In response to the publication, Balchunas expressed his displeasure with the CEO's claims, highlighting his disagreement and Bloomberg's constant pessimism towards the products. While Balchunas believes funds could be authorized in the foreseeable future, he believes this will not happen within a year. However, the November election and what Grayscale says about denial are important factors that could trigger a change in the forecast.
Balchunas further noted that Sonneshein mentioned that Grayscale decided to withdraw its eth futures ETF filed under the Securities Act of 1933 because it wanted to focus more on its spot ETF. Meanwhile, the main goal of introducing eth futures under the 1933 Act, as opposed to the 1940 Act, was to create a legal opening.
The expert believes that a possible reason why Grayscale made the decision could be because they do not want to pay the full cost once again to give Blackrock a massive ETF progress, as seen after the approval of the bitcoin Spot ETF while getting a lot of trash from people due to unblocking exits.
Shared opinion on Grayscale ETF withdrawal
Balchunas' ideas have caused quite a stir in the crypto community. Scott Johnsson, financial lawyer and author, has expressed his agreement with the general view of Bloomberg analysts.
Johnsson may be in line with Balchunas' perspective on why Grayscale withdrew its ethereum futures; However, he believes that by taking such a measure the company demonstrated its true intentions. “Can I blame them? “I don’t know, but don’t pee on my leg and tell me it’s raining,” he added.
He further stated that without withdrawing ETHE, Grayscale could not claim that it was trying to convert ETHE and at the same time engage in the most significant action to obstruct that goal.
Thus, Balchun He agreed with Johnsson saying that the part where he mentioned that Grayscale took a lot of nonsense from people was because of the high cost, which the company is to blame for. “I don't let them off the hook for what they said about the conversion, but I try to let others see it from their perspective/self-interest. When you do it, everything starts to make sense,” he added.
It is worth noting that the approval odds for ethereum spot ETFs today are ethereum-etf-approved-by-may-31?tid=1715328893501″ target=”_blank” rel=”noopener nofollow”>stop at just 9%, indicating a drop of almost 90% since the first presentations were made.
Featured image from iStock, chart from Tradingview.com
