Bloomberg Analyst Believes US SEC Will Deny Listing and Trading of Spot Ether ETFs by May 23

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Bloomberg Analyst Believes US SEC Will Deny Listing and Trading of Spot Ether ETFs by May 23

The odds of spot Ethereum (ETH) exchange-traded funds (ETF) getting approved in the United States by May 23  have dramatically dropped to 35 percent, according to analysts. The unanimous call is based on the fact that the United States Securities and Exchange Commission (SEC) has not engaged the spot Ether ETF applicants in the same manner that the spot Bitcoin ETF applicants received.

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The forecast follows Tuesday’s SEC decision to delay ruling on the Hashdex Nasdaq Ethereum ETF fund and the Ark 21Shares Ethereum ETF. While the recent delays were expected, all attention has remained on the May 23 deadline, when the US SEC must issue a ruling on the spot Ether ETF applications.

Some of the other spot Ether ETF applicants include BlackRock Inc (NYSE: BLK), iShares Ethereum Trust, Fidelity Ethereum Fund, and VanEck Ethereum ETF, among others.

However, the prediction on spot Ether ETF denial made by Bloomberg analysts can be countered by the fact that the same spot Bitcoin ETF applicants are competing to offer Ether-based products. Additionally, the spot Ether ETF applicants have a tight grip on what is needed by the US to ensure an imminent approval of the ETFs by May.

Moreover, the US SEC will be risking several lawsuits from the spot Ether ETF applications, especially after approving the Ethereum futures ETP.

Ethereum Market Outlook

The Ethereum network recently completed the activation of the Dencun upgrade on the mainnet, which introduced several changes but mainly reduced the transaction fees on the layer two scaling solutions. The Dencun upgrade has turned out to be a classic sell-the-news event, with Ethereum price down more than 22 percent to trade around $3,147 on Wednesday during the early London session.

Nonetheless, the entire cryptocurrency market cap dropped by more than 6 percent in the past 24 hours to stabilize around $2.4 trillion. Most cryptocurrency traders have been risking off in the past few days ahead of today’s interest rates announcement by the Federal Reserve.

The Ethereum ecosystem has enjoyed significant support from institutional investors led by BlackRock, which recently tokenized $100 million through USDC stablecoins.

The move by BlackRock to tokenize on the Ethereum network has raised speculation on the inevitable approval of spot Ether ETFs. However, the US SEC is keen not to trigger a precedent where more spot altcoins ETFs led by Solana SOL, and XRP are all applied due to heightened institutional demand.

Bloomberg Analyst Believes US SEC Will Deny Listing and Trading of Spot Ether ETFs by May 23

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