Ethereum Spot ETFs Unlikely to Gain Approval as Experts Predict Negative Outcome

Uncertainty surrounding the approval of Ethereum Spot Exchange-Traded Funds (ETFs) has emerged, with industry figures expressing pessimism about its chances. Tron founder Justin Sun predicts a lack of approval by the SEC within the May deadline, citing the need for further regulatory education in the crypto space. Despite a surge in optimism earlier this year, Polymarket data indicates a decline in approval odds to 11%, while Bloomberg Intelligence analyst Eric Balchunas has lowered his prediction to 35%.

Ethereum Spot ETF Approval Chances Dwindle as Industry Experts Express Pessimism

Washington, D.C. - The highly anticipated approval of Ethereum Spot Exchange-Traded Funds (ETFs) by the United States Securities and Exchange Commission (SEC) appears increasingly unlikely, with experts expressing growing pessimism about the prospects of approval by the May 23 deadline.

Tron Founder Justin Sun Predicts Negative Outcome

Justin Sun, founder of the Tron network, has predicted that the SEC will not approve spot ETH ETFs in the coming month. Sun believes that the industry needs to prepare for a lengthy education process to assist regulators in understanding cryptocurrencies.

Industry Sentiment Mirrors Sun's Pessimism

Sun's skepticism is shared by other prominent figures in the cryptocurrency space. Nate Geraci, President of the ETF store, has also hinted at the possibility of rejection due to the SEC's reduced involvement with ETH spot ETF issuers.

Polymarket Predicts Low Odds of Approval

Data from Polymarket, a decentralized prediction market platform, suggests that the chances of SEC approval have plummeted to just 11%. This is a significant drop from the 76% odds assigned to Bitcoin Spot ETFs when they were approved on January 10.

Bloomberg Intelligence Analyst Revises Down Odds

Bloomberg Intelligence analyst Eric Balchunas has also adjusted his approval odds to around 35%, down from his initial prediction of 70% in February. Balchunas cites the absence of the same signals that led him to an optimistic outlook for Bitcoin spot ETFs as a reason for his revised stance.

Reasons for SEC Hesitation

Despite the industry's desire for approval, the SEC has expressed concerns over the risks associated with cryptocurrency ETFs. These concerns include market volatility, potential for manipulation, and the need for rigorous surveillance.

Long-Term Approval Potential

While the May deadline appears unlikely to be met, some experts believe that spot ETH ETFs have the potential to be approved in the long term. Balchunas, despite his lower odds for the May deadline, maintains that approval is likely to occur eventually.

Conclusion

The fate of Ethereum Spot ETFs remains uncertain as the SEC deadline approaches. Industry experts are expressing increasing pessimism about approval by May, but the long-term prospects for these products remain unclear. The SEC's cautious approach and concerns over potential risks are likely to continue to play a significant role in the approval process.