SEC Faces Deadline for Approval of Spot Ethereum ETFs: Analysts Give Low Odds

The Securities and Exchange Commission (SEC) has one month to approve a batch of spot Ethereum exchange-traded funds (ETFs), but analysts are putting low odds on an approval. Despite the skepticism, issuers are not giving up, with BlackRock amending its ETF application and Grayscale filing for a spot fund conversion and a new Ethereum Mini Trust application this week.

Market watchers believe that the chances of US regulators approving the Ethereum ETFs by the end of May are slim, with Bloomberg Intelligence analysts estimating the odds at around 25% and Polymarket punters putting it at 14%. However, Nate Geraci, president of The ETF Store, believes that there is no reason for a spot Ethereum ETF not to exist.

The filings come as issuers aim to replicate the success of the 10 US spot Bitcoin ETFs launched in January, which have contributed to Bitcoin’s 58% rally in the past four months. While the SEC reluctantly approved the Bitcoin ETFs following Grayscale’s court case win, there is no similar case for Ethereum.

Despite the push for approval, not everyone in the crypto community is eager to see spot Ethereum ETFs approved just yet. Bitwise’s CIO has suggested that more time is needed for Wall Street and traditional finance to digest Bitcoin before moving on to Ethereum.

The deadline for the SEC to approve or deny VanEck’s ETF application is approaching on May 23, and the crypto community is eagerly awaiting the decision. Stay tuned for updates on this developing story.