Justin Sun Doubts Approval of Spot Ethereum ETF by SEC in May

Tron founder Justin Sun Doubts Approval of Spot Ethereum ETF by SEC

Crypto mogul Justin Sun has expressed skepticism about the approval of a spot Ethereum exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) in the upcoming month. Sun’s doubts align with the opinions of several analysts who also anticipate the rejection of applications for spot Ether ETFs from various issuers.

In a recent Twitter post on April 28, Sun emphasized the need for long-term education with regulators in the crypto industry to help them understand the technology better. However, reports from U.S. financial firms suggest that the approval of spot Ethereum ETFs is unlikely to happen in May, following discouraging meetings with the SEC.

Several firms, including Blackrock, VanEck, and ARK Investment Management, have filed applications with the SEC to list spot Ethereum ETFs. The SEC is expected to make decisions on VanEck’s and ARK’s applications by May 23 and May 24, respectively. Despite the approval of spot Bitcoin ETFs earlier this year, the prospects for spot Ethereum ETFs seem less optimistic.

Bloomberg ETF analyst Eric Balchunas has assessed the likelihood of a spot Ether ETF approval in May at around 35%, citing the SEC’s less proactive approach compared to Bitcoin ETF applications. Sun, who has had run-ins with the SEC in the past, is currently facing allegations of fraud, market manipulation, and offering unregistered securities.

The SEC lawsuit claims that Sun and his crypto businesses violated securities laws by selling unregistered securities like Tronix (TRX) and BitTorrent (BTT). Sun reportedly holds approximately $1 billion in assets, with the $280 million USDD algorithmic stablecoin being his largest holding. As the crypto industry awaits the SEC’s decision on spot Ethereum ETFs, the regulatory landscape remains uncertain.