Justin Sun Predicts SEC Will Not Approve Ethereum ETF in May

Tron blockchain founder Justin Sun predicts that the US Securities and Exchange Commission (SEC) will not approve an Ethereum exchange-traded fund (ETF) in May, sparking concerns and speculations within the crypto industry. In a recent post on social media, Sun emphasized the need for continued education and dialogue with regulators to help them better understand the complexities of the emerging crypto landscape.

Market analysts, including Bloomberg’s Eric Balchunas, share Sun’s skepticism, with the chances of an Ethereum ETF approval in May estimated at a mere 25%. The SEC’s perceived lack of involvement in the application process, coupled with rumors of ETH potentially being classified as a security, has further dampened hopes for approval.

Despite the grim outlook, ETF issuers like BlackRock and Grayscale remain persistent in updating their applications, signaling a glimmer of optimism. Franklin Templeton’s spot Ethereum ETF even made an appearance on the DTCC website, despite the SEC delaying its decision on the application.

Grayscale’s Chief Legal Officer, Craig Salm, remains hopeful, asserting that investors deserve access to Ethereum through a spot ETF. He believes that the case for a spot Ethereum ETF is just as strong as it was for Bitcoin ETFs, regardless of the SEC’s lack of engagement with applicants.

As the crypto industry braces for potential setbacks, the future of an Ethereum ETF approval remains uncertain, with Polymarket data indicating a mere 11% likelihood of approval, the lowest level this year. The ongoing dialogue between industry players and regulators will be crucial in shaping the future of crypto investment products in the US.