Ethereum Spot Exchange Traded Funds (ETFs) Approval chances continue to see notable pessimism as the cryptocurrency space awaits the U.S. Securities and Exchange Commission's (SEC) product decision scheduled for May.
Expectations surrounding the SEC's decision highlight the importance of ETF approval in giving conventional investors more convenient access to the Ethereum spot market. Currently, data from Polymarket, the world's largest prediction marketplace, shows that the ETH ETF's chances of approval have fallen to just 11%.
Pessimism deepens as Ethereum ETFs remain uncertain
As the May deadline approaches, doubt and skepticism loom on the horizon, casting a dark shadow over the products. One of the most recent figures to voice Nate Geraci, president of ETF Store, doubts the SEC's willingness to approve exchange-traded products next May.
According to Geraci, the regulatory watchdog remains strangely silent on Ethereum Spot ETF. He further suggested that the products may not be approved due to the SEC's significantly lower level of engagement with ETF issuers compared to previous interactions.
“Logic says this is correct, but I also wonder if the SEC has learned a lesson from the clown show with spot Bitcoin ETFs,” he added. Thus, he indicated two possible options for the products, which are either approval or legal action by the Commission.
Commenting on the president's ideas, a pseudonymous X user wondered if it was possible for activities to take place behind closed doors to avoid disrupting the pre-launch market. Geraci responded by saying he thought it might be possible, drawing attention to analysis from Van Eck CEO Jan Van Eck that might prove otherwise.
It is to highlight that Van Eck is one of the first companies to submit its application for an Ethereum exchange product. Although the company was the first to apply, Jan Van Eck is pessimistic about the ETPs being approved, saying they will likely be rejected in May.
He stated:
The way the legal process works is that the regulators will give you feedback on your application, and this happened weeks and weeks before Bitcoin ETFs. And right now, pins are falling when it comes to Ethereum.
In this context, investors prepare for an unpredictable outcome while managing market fluctuations and modifying their investment plans in the face of changing regulations.
ETH price sees positive movement
While Ethereum ETFs might be experiencing negative sentiment, ETH, on the other hand, has seen a positive rise of late. ETH revisited the $3,000 level again after falling to $2,888 over the weekend.
Today, the price of ETH is up over 4%, reaching around $3,234, indicating potential for further price recovery. At the time of writing, Ethereum was trading at $3,215, representing an increase of 1.40% over the past day.
Furthermore, the asset's market capitalization and trading volume increased by 1.40% and 5.96% in the last 24 hours. Given the expected impact of the recent concluded Bitcoin Halving When it comes to cryptocurrencies, ETH could be poised for notable moves in the coming months.
Featured image from iStock, chart from Tradingview.com
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