Tron founder Justin Sun expressed doubts about the possibility of a Spot Ethereum exchange-traded fund (ETF) being approved next month.
The crypto king’s latest prediction reflects similar opinions from multiple analysts, predicting that the Securities and Exchange Commission (SEC) will reject applications from multiple issuers for a Spot Ether ETF.
On April 28th ×postMr. Sun expressed his opinion on this matter and added:
“The crypto industry still needs to prepare for long-term education with regulators and focus on helping regulators understand crypto. But we’ll always be here, right?”
According to a Reuters report, US financial firms are hoping that approval for the Spot Ethereum ETF will take place in May, citing discouraging meetings with regulators in recent weeks. He says there is no.
So far, BlackRock, VanEck, ARK Investment Management, and six other issuers have applied to list Spot Ethereum ETFs with the SEC. The SEC has until May 23 and May 24 to make decisions on the high-priority VanEck and ARK files, respectively, according to the report.
However, the outlook for these Spot Ethereum ETFs to be approved by the SEC appears to be different than the outlook for the Spot Bitcoin ETF, which was approved in January.
In March, Bloomberg ETF analyst Eric Balciunas estimated that the chance of a Spot Ether ETF being approved in May was about 35%. He noted that the SEC's approach has not been as aggressive as its approach to Bitcoin ETF applications.
Mr. Sun, on the other hand, is no stranger to dealing with the Securities and Exchange Commission. The SEC recently charged Sun with fraud, market manipulation, and airdropping of unregistered securities.
According to the SEC's lawsuit, Sun and the aforementioned crypto operators violated federal securities laws by offering and selling unregistered securities such as Tronix (TRX) and BitTorrent (BTT).
In the latest court filing, the SEC alleges that the Tron founder has been in the United States “extensively” through his “work on behalf of the Tron Foundation, BitTorrent Foundation, and Rainberry.”
According to Arkham data, Sun holds approximately $1 billion in assets in multiple wallets associated with him, the largest of which is $280 million worth of USDD algorithmic stablecoins. That's what it means.
