Bloomberg Intelligence ETF analyst James Seyffart doubts that spot Ether (ETH) exchange-traded funds (ETFs) will receive approval in May.
These doubts are based on the apparent standoff between issuers and the Securities and Exchange Commission (SEC).
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Several companies, including industry giants BlackRock, Grayscale, Fidelity, ARK 21Shares, and others, have entered the fray, vying for the coveted approval to launch an ETH ETF.
Earlier this month, the SEC deferred its decision on applications from BlackRock and Fidelity. Seyffart anticipates that the applications will likely also be denied on May 23rd for this cycle. That is a revision from his and his colleague Eric Balchunas' earlier forecast, which suggested a 35% probability of approval.
This opinion comes amid observations of a deviation in the SEC's approach compared to the processes leading up to the approval of spot Bitcoin (BTC) ETFs earlier in January. The current scenario shows little to no dialogue between the SEC and ETH ETF hopefuls.
With crypto firms poised to pioneer the integration of Ether into the ETF space, the current standoff suggests a pivotal moment for the future of cryptocurrency investments.
Meanwhile, it is a challenging period for spot BTC ETFs, as they recently experienced their largest recorded daily outflows, amounting to $326 million.
