Bloomberg: Ethereum spot ETF will not pass in May! ETH once fell to $3,150

The U.S. Securities and Exchange Commission (SEC) yesterday once again delayed its decision on the Ethereum spot ETF proposed by Hashdex and ARK 21Shares. Currently, the final approval deadlines for the two Ethereum spot ETFs are set at May 30 and May 24 respectively. The SEC's delayed decision could be affected by market uncertainty and regulatory considerations, and investors and industry observers are closely watching the development. The approval of an Ethereum spot ETF will provide investors with more ways to participate in the cryptocurrency market and is expected to drive the development of the market. The SEC may need more time when reviewing these proposals

The Ethereum spot ETFs that are about to face the third review deadline include VanEck and Grayscale.

Analyst: Ethereum spot ETF will not pass in May

In this regard, Bloomberg ETF analyst James Seyffart said that it is expected that today or Tomorrow will also see the SEC delay a decision on the two issuers’ Ethereum spot ETFs. Notably, he now seems concerned about the likelihood of approval of the 8-tier Ethereum spot ETF: My cautiously optimistic attitude towards the ETH spot ETF has changed in recent months, and we now believe that these applications will eventually be approved in 5 Rejected on March 23rd. The SEC has yet to engage with issuers on the specifics of Ethereum, contrary to last fall’s Bitcoin spot ETF.

Eric Balchunas, a Bloomberg ETF analyst, expressed a pessimistic view on the prospects of the Ethereum ETF. He noted that the likelihood of an Ethereum ETF being approved has dropped to 35% as of the May deadline. While there are many reasons to support approval (and we personally believe so), there are not as many positive signals or news out there compared to when we were previously optimistic about the Bitcoin Spot ETF. This view has caused uncertainty about the approval of cryptocurrency ETFs and deepened investor concerns about the future direction of the market. As the regulatory environment continues to change, the approval of cryptocurrency ETFs faces many challenges, and investors need to remain vigilant and treat market risks with caution.

He previously pointed out that compared with the Bitcoin spot ETF, the Ethereum ETF has not been rejected by the court and is not as strongly correlated as the Bitcoin ETF. Therefore, the final picture may not be so optimistic.

The consensus among many analysts or experts is that Seyffart’s concerns have not been addressed. According to Fox Business reporter Eleanor Terrett, as of the 11th, the SEC had not actively promoted the approval process like it had approved the Bitcoin spot ETF.

Ethereum once hit $3,150

Just after Bloomberg analysts released their pessimistic views, Ethereum (ETH) hit a low of $3,150 this morning (20). The rebound is now at $3,237, down 8.68% in the past 24 hours.

If there is still no good news in the future, then the expectation that ETH will continue to rise may weaken.

Grayscale solicits shareholders to add "pledge" function

Asset management company Grayscale (Grayscale) is considering adding a "pledge" function to its Ethereum spot ETF application. In a “consent solicitation statement” sent to investors in the Grayscale Ethereum Trust, the company proposed the ability to collateralize the ether held by the trust.

Grayscale said that the ether in the staking trust can help it "alleviate the inflationary pressure caused by the Ethereum POS protocol" and is consistent with other similar investment products that provide staking services.

The proposal requires the approval of more than 50% of the shares to pass. If approved, Grayscale would join the likes of ARK 21Shares, Franklin and Fidelity, which have also recently added ether staking functionality to their Ethereum spot ETF applications.

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