Tron blockchain founder Justin Sun predicts that the US Securities and Exchange Commission (SEC) will likely not approve an Ethereum exchange-traded fund (ETF) in May. In a recent post on social media, Sun emphasized the need for the crypto industry to focus on educating regulators about how the industry operates.
Market analysts, including Bloomberg ETF analyst Eric Balchunas, share Sun’s skepticism, with Balchunas placing the chances of an Ethereum ETF approval in May at 25%. Speculations of the SEC potentially classifying ETH as a security have further dimmed the approval prospects, as indicated by recent feedback from meetings with the agency.
Despite the pessimism surrounding the approval of an Ethereum ETF, some optimism remains as ETF issuers like BlackRock and Grayscale continue to update their applications. Franklin Templeton’s spot Ethereum ETF even appeared on the Depository Trust and Clearing Corporation (DTCC) website, despite the SEC deferring its decision on the application.
Craig Salm, Grayscale’s Chief Legal Officer, expressed confidence in the case for a spot Ethereum ETF, stating that investors deserve access to Ethereum in this form despite the SEC’s lack of engagement with applicants. This sentiment suggests that there may still be hope for the approval of an Ethereum ETF, despite current challenges.
