Investor apprehensions mount as the Ethereum Exchange Traded Funds (ETF) await SEC approval, causing uncertainty and anxiety. Despite initial optimism following the successful approval of the Bitcoin Spot ETF, confidence in the Ethereum ETF has waned over time.
The prolonged delay in the SEC’s decision on the Ethereum ETF has fueled speculation and concern among market participants. With May set as the deadline for the SEC’s response, hopes for approval are dwindling as each day passes. Initially perceived as a surefire approval, recent indications suggest only a 50% chance of success.
The classification dilemma surrounding Ethereum—whether it should be deemed a security or a commodity—has contributed to the regulatory uncertainty. While the SEC has clarified Bitcoin’s status as a commodity, Ethereum’s designation remains unresolved, leading to prolonged deliberations.
Amidst divided opinions within the community regarding the likelihood of approval, Grayscale’s chief legal officer, Craig Salm, remains optimistic about the Ethereum ETF’s prospects. He asserts that investors deserve access to Ethereum through a spot ETF, echoing sentiments expressed during the Bitcoin ETF discussions.
However, Bloomberg analysts have tempered their approval forecast from 35% to 25%, citing the absence of bullish indicators witnessed during the Bitcoin ETF approval process. Despite this, Ethereum’s recent price recovery and its upward trajectory towards $4,000 offer a glimmer of hope.
Nonetheless, uncertainty persists, with Bloomberg analyst James Seyffart suggesting the possibility of further delays in the approval process. Amidst negative sentiment prevailing in the crypto industry, the SEC’s final decision on May 23 remains eagerly anticipated, marking a crucial milestone for the Ethereum ETF.