Key Points:
Van Buren Capital's Scott Johnsson suggests spot Ethereum ETF rejections may precede SEC's May 23 deadline.
Analysts project dim prospects for ETF approval, with only a 14% chance by month-end.
The SEC is probing Ethereum Trusts' compliance with regulatory standards as the market remains cautious.
Van Buren Capital General Partner Scott Johnsson has said that the rejection of applications for spot Ethereum ETFs could come two days before the SEC's originally scheduled May 23 deadline.
Read more: What Is A Spot Ethereum ETF? How Important Is The New Ether ETF?
Spot Ethereum ETF Rejections: Preceding SEC Deadline
The approval of Ethereum Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) faces uncertainty, with just days left until the deadline. Scott Johnsson suggests the rejection of spot Ethereum ETF applications could arrive two days earlier than scheduled.
Bloomberg Intelligence analyst Eric Balchunas predicts a bleak outlook, forecasting no approval before 2025. Betting platforms mirror this sentiment, offering only a 14% chance of approval by month-end.
The market's apprehension is palpable, reflecting in Bitcoin trading at around $64,400 and Ethereum at $2,970. These prices signify caution ahead of the SEC's decision.
Read more: Ethereum ETF Applications: Is There Potential For New Breakthrough?
SEC Scrutinizes Ethereum Trusts as Market Remains Cautious
Key factors influencing Ethereum's response include the SEC's minimal engagement with spot Ethereum ETF matters, ETH's ambiguous regulatory standing, and ongoing investigations into the Ethereum Foundation. These uncertainties contribute to the anticipated rejection while also fostering the potential for unexpected market shifts.
The SEC's recent hesitance to participate in meaningful dialogues with prospective spot Ethereum ETF creators has left many in the cryptocurrency sphere disheartened, affecting broader market sentiment. Despite this setback, ongoing reports from meetings between ETF candidates and SEC officials, disclosed by Fox Business reporter Eleanor Terrett, indicate that discussions persist, offering a glimmer of hope for future regulatory decisions.
The SEC is also specifically scrutinizing whether Ethereum Trusts have appropriately submitted their proposal for listing and trading shares, ensuring compliance with regulatory standards.
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