CDS Crypto News Renowned Analyst Predicts SEC Denial for Ethereum ETFs by May 23, 2024, Sending ETH Price Plummeting
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Renowned Analyst Predicts SEC Denial for Ethereum ETFs by May 23, 2024, Sending ETH Price Plummeting

Renowned ETF Analyst Predicts SEC Rejection of Ethereum ETF Applications by May 23, 2024

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Renowned Analyst Predicts SEC Denial for Ethereum ETFs by May 23, 2024, Sending ETH Price Plummeting

Renowned Analyst Predicts SEC Denial for Ethereum ETFs by May 23, 2024, Sending ETH Price Plummeting

Crypto NewsJames Seyffart, a respected analyst in the field of exchange-traded funds (ETFs), has voiced his belief that the U.S. Securities and Exchange Commission (SEC) will ultimately deny the spot Ethereum ETF applications by May 23, 2024. In a recent publication, Seyffart expressed a shift in his cautiously optimistic stance towards Ethereum ETFs. He highlighted the SEC’s lack of engagement with issuers regarding Ethereum specifics, contrasting it with the situation seen with Bitcoin ETFs last autumn.

Seyffart articulated his position following the SEC’s announcement of a delay in the Hashdex Ethereum ETF application on March 19. He anticipates further delays from the SEC in the coming days, pointing out that VanEck, Ark/21Shares, and Grayscale are all likely candidates for postponement within the next 12 days.

The analyst emphasized that these delays were not unexpected, as he has consistently maintained the viewpoint that the critical deadline is May 23. This stance has been evident since his earlier post on February 6, where he discussed the SEC’s postponement of Invesco’s and Galaxy’s ETH ETF approvals.

Renowned Analyst Predicts SEC Denial for Ethereum ETFs by May 23, 2024, Sending ETH Price Plummeting

As the likelihood of an Ethereum ETF approval continues to diminish, industry stakeholders are becoming less optimistic about its realization. Eric Balchunas, a Senior ETF Analyst for Bloomberg, noted on March 11 that the odds of an ETH ETF approval had dropped to 35%. He observed that the indicators which paved the way for the approval of Bitcoin ETFs in January are absent in the case of Ethereum ETFs.

Despite the prevailing pessimism, Balchunas believes that the SEC will likely only delay the implementation of the Ethereum ETF by not granting approval on May 23. Nevertheless, he maintains a positive outlook on its long-term prospects.

Following the SEC’s delay in approving Hashdex’s ETF application, the price of Ethereum experienced a significant decline on Tuesday. The leading altcoin recorded a drop of over 10% on that day, marking its largest single-day decrease since the beginning of 2024. At the time of writing, ETH was trading at $3,229, according to data from TradingView.

Renowned Analyst Predicts SEC Denial for Ethereum ETFs by May 23, 2024, Sending ETH Price Plummeting

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