Justin Sun Forecasts SEC Rejection of Ethereum ETF in May

The likelihood of the SEC approving an Ethereum ETF in May continues to decrease in light of recent developments.

sevval29/04/20241 Mins read349

Crypto News– Justin Sun, founder of the Tron blockchain, predicts that the US Securities and Exchange Commission (SEC) will likely reject an Ethereum exchange-traded fund (ETF) in May.

Justin Sun Forecasts SEC Rejection of Ethereum ETF in May

In an April 28 post on X (formerly Twitter), Sun emphasized the ongoing necessity for comprehensive education within the cryptocurrency industry, particularly directed towards regulators. He highlighted the importance of aiding regulators in understanding the operational dynamics of this emerging sector. Sun’s viewpoint aligns with widespread anticipation among market analysts, who foresee the SEC turning down pending Ethereum ETF applications.

My honest opinion (NFA) is that an Ethereum ETF won't be approved in May. The crypto industry still needs to prepare for a long-term education with regulators, focusing on helping them understand crypto. But we've always been here, haven't we?
— H.E. Justin Sun 孙宇晨 (@justinsuntron) April 28, 2024

For example, Bloomberg ETF analyst Eric Balchunas has estimated the likelihood of the SEC approving a spot Ethereum ETF in May at just 25%. He attributed this skepticism to the SEC’s relatively passive involvement in the application process compared to the period of Bitcoin ETF evaluations.

Furthermore, recent speculations suggest that the agency under Gary Gensler’s leadership has initiated efforts to classify Ethereum (ETH) as a security, leading to a lawsuit filed by Consensys against the Commission.

Moreover, feedback from recent meetings with the SEC indicates a pessimistic outlook, with approval prospects appearing dim.

These developments have significantly reduced the likelihood of an Ethereum ETF approval to 11%, marking its lowest level this year, according to data from Polymarket.

However, some degree of optimism persists as ETF issuers such as BlackRock and Grayscale continue to update their applications despite the prevailing silence and anticipation of rejection.

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sevval

Şevval has been actively writing since 2022 and is a third-year mathematics student at Ankara University. Her interest in writing is shaped particularly around innovative technologies such as Web3, artificial intelligence, and blockchain. She closely follows developments in these fields and aims to convey complex topics to readers in a clear and engaging manner. She enjoys combining her mathematical knowledge with technology to create content and strives to raise awareness about the digital world of the future.

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