The US Securities and Exchange Commission (SEC) is anticipated to reject the approval of a Spot Ethereum ETF next month, according to insider reports. The ongoing meetings between issuers and the SEC have cast a shadow of doubt, with rejection appearing increasingly likely in May, as reported by Reuters.
Industry Anticipation Dampened
The report further solidifies industry-wide expectations of Ether ETF rejections, echoing forecasts initially made by Standard Chartered and supported by insider insights. However, the outlook for approval is bleak, with descriptions of the ongoing meetings providing little hope for an imminent green light.
Awaited Progress After Bitcoin’s Success
Since the introduction of Spot Bitcoin ETFs earlier this year, the market has eagerly awaited the next potential assets for ETF inclusion. The positive impact of BTC offerings has sparked discussions about the potential for further industry development with additional ETF approvals.
Critical Impasse for Ethereum ETF Approval
Despite initial optimism, Ethereum ETF approval appears to have reached a critical juncture. Insider reports suggest increasing doubts about approval, with assurances that no decision will be made in the upcoming month.
One-Sided Discussions and Contradictions
Reports of “one-sided” discussions between the SEC and issuers, lacking substantive details about the proposed product, contrast starkly with the intensive and detailed discussions that preceded Bitcoin’s Spot ETF approval. This disparity indicates a significant gap between the SEC’s stance and issuers’ expectations.
Ongoing Delays and Future Prospects
The current state of affairs suggests a prolonged delay for Ethereum ETF approval, with numerous issuers resubmitting applications amidst ongoing discussions. The timeline for approval remains uncertain, contingent upon further developments in these discussions.
While the market eagerly anticipates the expansion of ETF offerings beyond Bitcoin, the SEC’s reluctance to engage in substantive discussions raises concerns about the future of Ethereum ETF approval. Investors and industry stakeholders must closely monitor developments in the coming months to gauge the trajectory of regulatory approval.