- The odds of an Ethereum ETF being approved in May have fallen significantly due to a lack of activity between the SEC and ETF issuers.
- While some observers remain cautiously optimistic, major investment banks believe approval by May is unlikely.
- Most analysts still expect ETF approval at some point this year, even if the May deadline passes without a decision.
The odds of an Ethereum exchange-traded fund (ETF) securing regulatory approval in May have fallen significantly, according to industry experts. This contrasts with the previously more optimistic forecasts.
Lack of Activity Among Relevant Parties
Analysts at Bloomberg have lowered the probability of an Ethereum ETF being approved by May to just 35%. The revision comes amid a distinct lack of activity in regulatory circles, despite the deadline being two months away.
In contrast, there was a flurry of engagement between the SEC and spot Bitcoin ETF issuers for weeks before those applications were approved. But for Ethereum, analysts say there has been a noticeable absence of commentary from the SEC after recent ETF-related meetings.
Cautiously Hopeful Perspectives
Some industry observers remain cautiously optimistic, suggesting the coming weeks could provide clearer signals about the SEC’s stance. However, major investment banks believe approval by May is unlikely. Crypto market-making firm GSR also admits its initial optimism could soon fade without visible progress.
Standard Chartered has diverged, repeatedly stating the SEC will likely approve Ethereum ETFs in May.
Conclusion
Overall, skepticism appears to be growing about the prospects for a regulatory green light on Ethereum ETFs in the short term. But most analysts still expect an approval at some point this year, even if the May deadline passes uneventfully. The coming weeks may provide greater clarity on the SEC’s direction.
