According to DL News: With only nine days left for the Securities and Exchange Commission (SEC) to approve or reject spot Ethereum exchange-traded funds (ETFs), crypto traders are anticipating possible trading strategies. The general outlook remains pessimistic, as Bloomberg Intelligence ETF analyst Eric Balchunas predicts no approval before the end of 2025, and bettors on Polymarket offer only a 14% chance of approval before May 31.
Quinn Thompson, founder of crypto hedge fund Lekker Capital, proposed an unconventional strategy to crypto traders. Despite the probable rejection, Thompson believes it might trigger a bullish price action for Ethereum. This view rests on the predominant bearish market sentiment and positioning before the event, making the rejection a likely expectation already priced in.
The possibility of Ethereum unexpectedly surging might therefore present opportunities for savvy traders, with expectations going against the consensus. However, Thompson also cautioned that the SEC's basis for an anticipated rejection could influence this strategy.
As Brian Rudick, senior strategist at crypto trading firm GSR, added, factors such as the SEC's lack of engagement with prospective ETF issuers, Ethereum's ambiguous regulatory status, and the SEC's investigation into the Ethereum Foundation are all clear warning signs.
The SEC has until May 23 to make a decision on asset manager VanEck's application to launch a spot Ethereum ETF. At the time of reporting, Bitcoin trades at $61,835, while Ethereum stands at $2,918.