With the US Securities and Exchange Commission (SEC) delaying its decision on the Ethereum spot ETF proposals by Hashdex and ARK 21Shares, Bloomberg analyst James Seyffart pessimistically believes that the Ethereum spot ETF will ultimately be rejected in May.
(Foreword:
Fidelity applies for “staking” service for Ethereum spot ETF, creating more revenue! Lido and RocketPool surged upon hearing the news.
)
(Background supplement:
Should we be prepared for the rejection of the Ethereum spot ETF? Three reasons why the SEC may reject it.
)
Table of Contents
Analyst: Ethereum spot ETF won’t be approved in May
Ethereum briefly drops to $3,150
Grayscale seeks to add “staking” feature for shareholders
The US Securities and Exchange Commission (SEC) yesterday (19th) postponed its decision on the Ethereum spot ETF proposals by Hashdex and ARK 21Shares, with the final deadlines for these two Ethereum spot ETF applications set for May 30th and May 24th respectively.
VanEck and Grayscale, which are also facing their third review deadline for the Ethereum spot ETF, are yet to be decided.
In response, Bloomberg ETF analyst James Seyffart stated that he expects to see the SEC further delay its decision on the Ethereum spot ETF proposals by these two issuers today or tomorrow. It is worth noting that he now seems concerned about the likelihood of the approval of the eight Ethereum spot ETFs:
Similarly, Bloomberg ETF analyst Eric Balchunas also turned pessimistic, stating:
He previously pointed out that compared to Bitcoin spot ETFs, Ethereum ETFs have not seen successful legal battles after being rejected, and the correlation between Ethereum spot and futures is not as strong as that of Bitcoin ETFs, so the final outcome may not be optimistic.
Seyffart’s concerns align with those of several other analysts or experts. On the 11th, Fox Business reporter Eleanor Terrett also revealed that the SEC has not been pushing the approval process forward significantly, as it did with Bitcoin spot ETFs.
Following the release of the pessimistic views by Bloomberg analysts, Ethereum (ETH) briefly dropped to $3,150 this morning (20th), rebounding to $3,237 at the time of writing, a decrease of 8.68% in the past 24 hours.
If there is no good news in the future, the expectation for continued upward movement of ETH may weaken.
ETH spot | Source: Binance
Asset management company Grayscale is considering adding a “staking” feature to its Ethereum spot ETF application. In a “solicitation of consent” sent to investors in the Grayscale Ethereum Trust, the company proposes the ability to pledge the Ethereum held by the trust.
Grayscale states that staking the Ethereum in the trust can help “mitigate inflationary pressure from the Ethereum POS protocol” and align with similar investment products that offer staking services.
The proposal requires over 50% of shares to approve it. If approved, Grayscale will join companies like ARK 21Shares, Franklin, and Fidelity, which have recently added Ethereum staking features to their Ethereum spot ETF applications.
Further reading:
Fidelity applies for “staking” service for Ethereum spot ETF, creating more revenue! Lido and RocketPool surged upon hearing the news.
Related Reports
SEC delays Invesco/Galaxy Ethereum spot ETF! Bloomberg analyst reiterates May 23rd as the key date
Will the Ethereum spot ETF be rejected in May? Chairman Gary Gensler: I will never disclose it
Will the Ethereum spot ETF struggle in May? SEC shows a negative attitude, and anti-crypto lawmakers intervene to obstruct.