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Ethereum ETF approval likelihood drops to 35%
c| FX168 Financial News (North America) News Bloomberg analyst James Seyffart believes that the U.S. Securities and Exchange Commission (SEC) will veto the listing and trading of spot Ethereum ETFs by May 23.
Sephat noted that as of now, the SEC has not engaged in any kind of interaction with spot Ethereum ETF applicants as it did with Bitcoin earlier this year. #现货比特币ETF#
According to Sefat, the chances of a spot Ethereum (ETH) exchange-traded fund (ETF) being approved in the U.S. dropped sharply to 35% by May 23.
This prediction comes after the SEC's decision on Tuesday (March 19) to postpone the ruling on the Hashdex Nasdaq Ethereum ETF Fund and the Ark 21Shares Ethereum ETF. While the recent delay is to be expected, all focus remains on the May 23 deadline, when the SEC must issue a ruling on the spot Ethereum ETF application.
Some other spot Ethereum ETF applicants include BlackRock Group (NYSE: BLK), iShares Ethereum Trust, Fidelity Ethereum Fund, and VanEck Ethereum ETF, among others.
However, Bloomberg analysts' predictions of a spot Ethereum ETF veto are likely to be met with some refutation, as the same spot Bitcoin ETF applicants are competing to launch an Ether-based product. In addition, spot Ethereum ETF applicants have a firm grasp of what the U.S. needs to ensure ETF approval by May.
In addition, the SEC will face multiple lawsuits from spot Ethereum ETF applicants, especially after approving the Ethereum futures ETP.
Ethereum market outlook
The Ethereum network recently completed the activation of the Dencun upgrade on mainnet, which introduced some changes, but mainly reduced transaction fees on Layer 2 scaling solutions. The Dencun upgrade has become a classic "sell good news" event, with the price of Ethereum falling more than 22% in early London trading on Wednesday (March 20), trading at around $3,147.
Despite this, the entire crypto market capitalization has fallen by more than 6% over the past 24 hours, stabilizing at around $2.4 trillion. In the days leading up to the Fed's interest rate announcement, most crypto traders have been risk-averse.
The Ethereum ecosystem has received strong support from institutional investors, led by BlackRock Group, which recently tokenized $100 million through the USDC stablecoin.
BlackRock Group's move to tokenize on the Ethereum network has sparked speculation about the inevitable approval of a spot Ethereum ETF. However, the SEC is careful not to trigger a precedent for increased institutional demand to trigger more applications for spot altcoin ETFs such as Solana SOL and XRP.