While all eyes were on Ethereum ETF approval following the approval of spot Bitcoin ETFs, the possibility of ETH ETF approval has decreased since January.
While the final decision on ETH ETF applications is expected at the end of May, the market is very worried about whether the SEC will approve Ethereum ETFs.
At this point, Bloomberg ETF analyst Eric Balchunas, sharing from the X account, said that the probability of an Ethereum ETF receiving approval is “25%”.
Pointing out that this rate is very pessimistic for ETF approval, Balchunas said that the signs are not good for ETH ETFs.
Bloomberg analyst stated that the fact that the SEC is not active in the ETH ETF process and does not meet with issuers, as in the spot Bitcoin ETF process, is effective in reducing the likelihood of approval.
“We keep the ETH ETF approval probability at 25%, which is seen as very pessimistic.
The SEC's lack of involvement in the process appears to be aimed at countering procrastination. There are no positive signs anywhere you look.
“I personally was hoping they would approve it, but it's not looking good.”
Re Eth ETF approval, we are holding the line at 25% odds altho tbh it is a very pessimistic 25%. The lack of engagement seems to be purposeful vs procrastination. No positive signs/intel anywhere you look. Personally hope they do approve it but it just ain't looking good. https://t.co/nuBdCDE18L
— Eric Balchunas (@EricBalchunas) March 25, 2024
Although the Bloomber ETF analyst stated that the SEC's participation revealed a negative picture for the Ethereum ETF approval, Grayscale Chief Legal Officer Craig Salm stated that this is not a negative situation for ETH ETFs, and that the SEC provided the necessary participation in the spot Bitcoin ETF approval process.
*This is not investment advice.
