Tron blockchain founder Justin Sun said the U.S. Securities and Exchange Commission (SEC) will not approve an Ethereum exchange-traded fund (ETF) in May.
on April 28th post On
“My honest opinion (NFA) is that the Ethereum ETF will not be approved in May. The cryptocurrency industry still needs to work with regulators to prepare for long-term education focused on improving understanding of cryptocurrencies,” Sun said.
Sun’s stance echoes the sentiments of numerous market analysts who expect the SEC to reject the pending Ethereum ETF application.
For example, Bloomberg ETF analyst Eric Balchunas puts a 25% chance that the SEC will approve a spot Ethereum ETF in May. He attributed this skepticism to the SEC’s less active involvement in the application process than during the Bitcoin ETF period.
Additionally, recent speculation suggested that an agency led by Gary Gensler had begun efforts to classify ETH as a security, which prompted the Consensys lawsuit against the Commission.
Additionally, feedback from recent meetings with the SEC has been pessimistic, with prospects for approval looking bleak.
These revelations have reduced the likelihood of Ethereum ETF approval to 11%, the lowest level this year, as shown by Polymarket data.
Still, some optimism persists as ETF issuers like BlackRock and Grayscale continue to update their applications despite silence and expected rejections.
In particular, asset management company Franklin Templeton’s spot Ethereum ETF appeared on the Depository Trust and Clearing Corporation (DTCC) website on April 23, despite the SEC delaying its decision on the ETF application.
Craig Salm, Grayscale’s chief legal officer, said the US SEC’s lack of engagement with spot Ethereum ETF applicants would not be a determining factor hindering the prospects of such a product.
“Investors want and deserve access to this. Ethereum This comes in the form of a spot Ethereum ETF, and we believe this case is just as strong as spot. bitcoin ETFs, Salm said.