Expectations that the long-awaited ethereum Spot Exchange Traded Funds (ETFs)) that will be approved by the United States Securities and Exchange Commission (SEC) have continued to fall. In this regard, Justin Sun, founder of the Tron network, has made an important x.com/justinsuntron/status/1784609758076703224″ target=”_blank” rel=”noopener nofollow”>prediction on the regulatory prospects of the Spot ethereum ETF, indicating that approval is unlikely to occur before the May deadline.
Uncertainty around ethereum spot ETFs
Earlier this year, the cryptocurrency industry was bullish on ethereum spot ETFs, but as the May 23 decision date approaches, there appears to be growing pessimism about the products being approved by of the SEC.
founder of tron, Justin Sun, It seems certain that eth spot ETFs will not be approved by the SEC in the following month, expressing negative sentiment. According to Sun, to help authorities and regulators understand cryptocurrencies, the cryptocurrency industry still needs to prepare for a long educational process, although he believes the industry has already been here.
The post said:
My honest opinion (NFA) is that an ethereum ETF will not be approved in May. The cryptocurrency industry still needs to prepare for long-term education with regulators, focusing on helping them understand cryptocurrencies. But we've always been here, right?
Sun is not the only popular figure in the crypto space who has recently expressed doubts about spot products getting the green light from the regulatory watchdog. Last week, ETF Store President Nate Geraci hinted that the products might not be accepted due to the SEC's greatly reduced involvement with eth spot ETF issuers compared to previous interactions.
While Geraci believes this is logically correct, he also questions whether the Commission learned a lesson from the clown show with bitcoin Spot ETFs. However, the President has identified two potential outcomes for eth spot ETFs, including Commission authorization or legal action.
Spot eth ETF Approval Odds Plummet
Since the request for a spot eth ETF emerged, the likelihood of the exchange's funds being approved in May has decreased. ethereum-etf-approved-by-may-31?tid=1714373599964″ target=”_blank” rel=”noopener nofollow”>Data from Polymarket, a decentralized prediction market platform, shows that the chances of acceptance are now estimated at 11%. When spot ETFs for bitcoin were approved on January 10, the odds were measured at 76%, suggesting a significant decline over time.
Additionally, Bloomberg Intelligence analyst Eric Balchunas has placed his approval odds at around 35%, down from his initial prediction of 70% in February. The Bloomberg expert indicated that he believes the Commission should approve eth spot ETFs for several reasons.
However, this time, none of the sources or signals that provided him with an optimistic two-and-a-half-month forecast for bitcoin Spot ETF they are present. Although Balchunas' chances of meeting the May deadline have diminished, he believes spot products are likely to be accepted in the long term.
Featured image from iStock, chart from Tradingview.com