Spot Ethereum ETF Now Unlikely To Get SEC Approval In May

Key Points:

• Bloomberg analysts foresee low odds of spot Ethereum ETF approval in May, citing regulatory hurdles and limited issuer collaboration.
• The SEC postpones decisions on Hashdex and Ark 21 Shares Ethereum ETFs, extending review deadlines.
• Despite applications from major firms like Fidelity, optimism for Ethereum ETF approval wanes as analysts revise estimates downward amidst ongoing regulatory uncertainty.

The possibility of a spot Ethereum ETF getting approval in May appears increasingly slim, according to Bloomberg analyst James Seyffart.

Bloomberg Analysts Assess Spot Ethereum ETF Outlook

He anticipates that the proposal will likely be rejected on May 23 due to what he perceives as a lack of cooperation between U.S. regulators and potential issuers like BlackRock, Fidelity, and others.

Similarly, Eric Balchunas, another Bloomberg analyst, concurs with Seyffart’s assessment, citing the absence of bullish indicators that preceded Bitcoin ETF approvals. Balchunas estimates the odds of a favorable decision for Ethereum ETFs at just 35%.

Seyffart, however, disagrees with the notion that Ethereum could be classified as a security, a classification that could significantly impact its regulatory treatment.

Major Firms’ Ethereum ETF Applications Face Uncertain Future

The Securities and Exchange Commission (SEC) has postponed decisions on Hashdex and Ark 21 Shares spot Ethereum ETFs to May 30 and May 24, respectively, citing the need for more time to consider the proposed rule changes.

Other major firms have applied for spot Ethereum ETFs in recent months. Notably, the Nasdaq stock exchange has filed with the SEC to list the Hashdex Nasdaq Ethereum ETF. The SEC’s decision on this ETF has been delayed multiple times, with the deadline now set for May 23.

Meanwhile, Fidelity has added staking to its spot Ether ETF application, further highlighting the evolving landscape of cryptocurrency ETFs awaiting regulatory approval.