Leading expert Eric Balchunas from Bloomberg provided an update on the anticipated approval of a spot Ethereum ETF amid recent developments in regulatory processes.
Recall that, yesterday, the SEC postponed decisions on the Hashdex and Ark 21 Shares applications to the end of May, indicating the necessity for a longer period to consider the proposed rule changes and issues raised.
Alex DovbnyaWith this in the background, Balchunas emphasized the slim chances of approval for the spot Ethereum ETF in May, citing a lack of cooperation between U.S. regulators and potential issuers such as BlackRock, 21 Shares, ARK Invest and others, as was previously noted by Bloomberg analyst James Seyffart.
Balchunas referenced his colleague's analysis, pointing out the stark contrast between the timeline for Bitcoin ETF comments and the impending deadline for the Ethereum solution. With only 65 days remaining until the deadline, the urgency for regulatory engagement intensifies, the expert believes.
Tick tock
Speculation surrounding the approval hinges on various factors, including potential SEC commentary, market sentiment toward Ethereum's security and political pressures, according to the Bloomberg expert. He also hinted at a discernible apprehension within the regulatory landscape, suggesting a cautious approach in comparison to previous instances.
As the deadline approaches, financial market participants await further insights into the regulator's stance and the likelihood of Ethereum ETF approval, with implications, of course, extending across the crypto space. Balchunas' assessment there provides a glimpse into the complexities underlying the regulatory process and its implications for investors and industry participants.
Alex Dovbnya
Vladislav Sopov
Dan Burgin