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News

Spot Ethereum ETF Now Unlikely To Get SEC Approval In May

March 20, 2024 - Around 2 mins mins to read

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.
Spot Ethereum ETF Now Unlikely To Get SEC Approval In May
Spot Ethereum ETF Now Unlikely To Get SEC Approval In May 2

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.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Ark 21 Shares

Bitcoin ETF

Blackrock

Ethereum

Fidelity

Hashdex

SEC

Spot Ethereum ETF

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

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.
Spot Ethereum ETF Now Unlikely To Get SEC Approval In May
Spot Ethereum ETF Now Unlikely To Get SEC Approval In May 4

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.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.