- The SEC has one month to approve a series of spot Ethereum ETFs.
- Analysts say approval is unlikely.
- The issuer filed new amendments and a new application this week.
Market watchers say U.S. regulators are unlikely to approve blanket Ethereum exchange-traded funds (ETFs) by the end of May, but that won't stop issuers from trying.
BlackRock amended its ETF application on Tuesday to meet the May 23 deadline (the first of nine) for the Securities and Exchange Commission to approve or deny VanEck's ETF application. . application — Get closer.
Grayscale on Tuesday also filed a prospectus to convert the Futures Ethereum ETF into a spot fund and an application for the Grayscale Ethereum Mini Trust.
“Issuers are clearly not staying silent on this issue,” Nate Geraci, president of ETF Store, told X. are discussing “There's no reason why spot ETFs shouldn't exist.”
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The filing marks the issuer's latest effort to replicate the success of the 10 U.S. Spot Bitcoin ETF launched in January, which led to the cryptocurrency's 58% rally over the past four months. It is the main driving force.
The SEC reluctantly approved these ETFs on the back of Grayscale winning a lawsuit to convert futures Bitcoin ETFs into spot ETFs, but no such lawsuit exists for Ethereum.
Bloomberg Intelligence analysts James Seifert and Eric Balchunas peg the chance of approval in May at about 25%.
Similarly, participants on blockchain-based betting platform Polymarket estimate the probability of approval at 14%.
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“We don't see anything that would change our expectations,” Seifert told X on the back of the new filing. “That said, this clearly shows that the issuer is not giving up the fight.”
Not everyone in the crypto industry wants the Spot Ethereum ETF approved. At least not right now.
The CIO of asset management firm Bitwise said in March that it might actually be a good thing that the fund hasn't been approved yet.
“Dear Wall Street, traditional finance is just beginning to embrace this giant thing called Bitcoin,” Matt Hogan said on a panel last month. “We need another eight to nine months to digest Bitcoin.
Sebastian Sinclair is DL News' market correspondent. Any tips? Please contact Cebu: sebastian@dlnews.com.
