Ethereum Spot ETFs Approval Skepticism Persists, As ETH Recovers

Ethereum Spot Exchange Traded Fund (ETF) There remains significant pessimism over the odds of approval as the crypto industry awaits a US Securities and Exchange Commission (SEC) decision on the product, expected in May.

The expectations surrounding the SEC’s decision highlight how important ETF approval is in giving traditional investors more convenient access to the Ethereum spot market. the current, data According to research from Polymarket, the world’s largest prediction market, the probability of ETH ETF approval has dropped to just 11%.

Pessimism deepens as Ethereum ETF uncertainty remains

As the May deadline approaches, doubts and skepticism loom over the product, casting a pall over the product. One of the recent numbers is; voice Nate Geraci, president of ETF Store, has doubts about the SEC’s intention to approve an exchange-traded product this May.

Geraci said regulators have been eerily silent. Ethereum Spot ETF. He further suggested that the product may not be approved because the level of engagement between the SEC and ETF issuers is significantly lower than in previous interactions.

“Logic says it is, but I also wonder if the SEC learned its lesson from the clown show with the Spot Bitcoin ETF,” he added. He therefore pointed out that there are two possible options for this product: approval from the European Commission or litigation.

One pseudonymous X user commented on the president’s insight and wondered if the activity might be happening behind closed doors to avoid pre-launch market turmoil. In response, Geraci said he believed it was possible, drawing attention to a review by Van Eck CEO Jan Van Eck that may prove otherwise.

It is worth noting that Van Eck was one of the earliest companies to submit an application for an Ethereum exchange product. Despite the company’s initial application, Jan van Eck was pessimistic about ETP’s approval, saying it would probably be rejected in May.

he said:

The legal process is for regulators to comment on your application, and it was happening for weeks before Bitcoin ETFs were introduced. And now, as far as Ethereum is concerned, pins are on the decline.

With this in mind, investors need to manage market fluctuations and modify investment plans in the face of regulatory changes, while preparing for unpredictable outcomes.

ETH price shows positive movement

While the Ethereum ETF may be experiencing negative sentiment, ETH on the other hand has witnessed a positive rally recently. ETH fell to $2,888 over the weekend before returning to the $3,000 level.

Today, ETH price has increased by more than 4%, reaching around $3,234, indicating the possibility of further price recovery. As of this writing, Ethereum is trading at $3,215, indicating an increase of 1.40% over the past day.

Additionally, the asset’s market capitalization and trading volume increased by 1.40% and 5.96%, respectively, in the past 24 hours. Considering the recent expected impacts, Conclusion Bitcoin Halving When it comes to cryptocurrencies, ETH could make some notable moves in the coming months.

ETH trading at $3,204 on 1D chart | Source: ETHUSDT tradingview.com

Featured image from iStock, chart from Tradingview.com

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