According to Eric Balchunas, an analyst for Bloomberg exchange-traded funds (ETFs), the chances of the U.S. Securities and Exchange Commission (SEC) approving an Ethereum (ETH) ETF by the end of May are unlikely. Balchunas expressed his pessimism about the approval of an ETH spot ETF in a post on the social media platform X. During an appearance on the David Lin YouTube channel, Balchunas explained that one reason for his skepticism is that the approval process is lagging behind schedule.
The final deadline for approval is May 21st, but the SEC has not yet provided any comments to the issuers. Typically, the SEC would respond to the issuers’ regulatory filings with a set of questions and request a new filing. This process can take weeks or even months, and it has not even started yet. Balchunas believes that the SEC has deliberately chosen not to comment on the filings.
Balchunas also suggests that the opinions of SEC Chair Gary Gensler may be impeding the approval of a spot Ethereum ETF. Gensler is believed to view Ether as a security rather than a commodity, and approving an ETF would contradict his stance.
Furthermore, Balchunas notes that the SEC is not under pressure to approve a spot Ethereum ETF as it was with the spot Bitcoin (BTC) ETF. Grayscale’s victory in a lawsuit against the SEC paved the way for the approval of the BTC ETF. In the ruling, the judge deemed the SEC’s failure to approve a Grayscale Bitcoin exchange-traded product to be unlawful.
Balchunas believes that Gensler has little room for maneuvering politically and is unlikely to approve an Ethereum ETF. Unlike Bitcoin, Ethereum lacks the same favorable circumstances that led to the approval of a BTC ETF.
It is important to note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are done at one’s own risk, and any losses incurred are the responsibility of the individual. The Daily Hodl does not endorse the buying or selling of cryptocurrencies or digital assets, and it is not an investment advisor.
