Tron blockchain founder Justin Sun said the U.S. Securities and Exchange Commission (SEC) will not approve an Ethereum exchange-traded fund (ETF) in May.
On April 28th post Sun noted on X (formerly Twitter) that the crypto industry still needs to prepare for long-term education with regulators, especially to understand how the emerging industry operates.
“My honest opinion (NFA) is that the Ethereum ETF will not be approved in May. We need to focus on helping people understand,” Sun said.
Sun's position echoes the sentiment of many market analysts who expect the SEC to reject the pending Ethereum ETF application.
For example, Bloomberg ETF analyst Eric Balchunas says there is a 25% chance the SEC will greenlight a spot Ethereum ETF in May. He attributed this skepticism to the SEC being less actively involved in the application process than it was in the Bitcoin ETF era.
Also, recent speculation suggests that the Gary Gensler-led agency has begun efforts to classify ETH as a security, leading to ConsenSys' lawsuit against the commission.
Additionally, feedback from recent meetings with the SEC indicates a pessimistic outlook, and the outlook for approval appears bleak.
These revelations have lowered the likelihood of Ethereum ETF approval to 11%, the lowest level this year, as shown by Polymarket data.
Nevertheless, some optimism persists as ETF issuers like BlackRock and Grayscale continue to update their applications despite expectations of silence and rejection.
Notably, asset management firm Franklin Templeton's Spot Ethereum ETF was listed on the Depository Trust and Clearing Corporation (DTCC) website even though the SEC postponed its decision on the ETF application until April 23. Thing.
Craig Sahm, chief legal officer at Grayscale, said the US SEC's lack of engagement with Spot Ethereum ETF applicants would not be a decisive factor in preventing the prospects of such a product. Ta.
“Investors want and have the right to access Ethereum in the form of a Spot Ethereum ETF, and we believe this case is just as strong as the one for Spot Bitcoin ETFs,” Salm said.
