- Tron CEO Justin Sun doubts SEC approval for an Ethereum ETF in May.
- Several market experts also share a similar stance
- Jan Van Eck noted fading optimism regarding the approval of Ethereum ETF.
Tron CEO Justin Sun expressed doubts about the Securities and Exchange Commission (SEC) approving an Ethereum exchange-traded fund (ETF) in May, suggesting that cryptocurrency regulators require “long-term education.”
Sun addressed his 3.5 million X followers, saying, “My honest opinion (NFA) is that an Ethereum ETF won’t be approved in May. The crypto industry still needs to prepare for a long-term education with regulators, focusing on helping them understand crypto. But we’ve always been here, haven’t we?”
Furthermore, several market experts also share a similar stance, expecting the SEC to decline requests for the approval of an Ethereum ETF in May.
Sun’s remarks highlighted the SEC’s delay in deciding on various spot Ethereum ETF applications. Numerous prominent financial entities, including BlackRock and Fidelity, have submitted proposals, yet the SEC has not reached a verdict after more than six months of evaluation.
The SEC initially set a deadline of May 24, 2024, to review ARK Invest’s spot Ethereum ETF, but subsequent delays have become a trend. Recently, the Commission postponed its decision on Franklin Templeton’s application, extending the review period until June 11, 2024. Meanwhile, the agency solicited public feedback on proposed amendments to BlackRock’s iShares Ethereum Trust.
This prolonged indecision has prompted uncertainty within the cryptocurrency industry regarding the likelihood of ETF approval. Market participants now question the feasibility of obtaining regulatory approval for such financial instruments.
During the Paris Blockchain Week crypto event, Jan Van Eck, CEO of VanEck, noted that optimism regarding approving a spot Ethereum ETF is fading. He suggested that his firm and Cathie Wood’s ARK Invest could be the first to face rejection. Moreover, CoinShares CEO Jean-Marie Mognetti echoed this sentiment, saying, “I don’t see anything being approved this side of the year.”
In addition, Bloomberg Intelligence analysts opined that the Securities and Exchange Commission (SEC) might make a final decision on Ether ETFs in May, coinciding with application deadlines from various asset managers.
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