According to U.Today, Nate Geraci, president of the ETF Store, has indicated that the U.S. Securities and Exchange Commission (SEC) is unlikely to approve spot Ethereum exchange-traded funds (ETFs) this May. This prediction is based on the SEC's lack of engagement with issuers in recent weeks. Earlier this month, it was reported that discussions about spot ETFs have been largely one-sided, contrasting with the constant dialogue observed prior to the approval of multiple Bitcoin ETFs.
The SEC has not provided any feedback on Ethereum ETFs, suggesting that their approval is highly unlikely at this time. Eric Balchunas, Bloomberg's senior ETF analyst, has stated that the SEC's silence on the matter could be interpreted as a negative sign for potential issuers.
In the event of a rejection of Ethereum ETF applications, the SEC could potentially face another lawsuit. This follows a legal victory by Grayscale in August, when the U.S. District of Columbia Court of Appeals ruled that the SEC was wrong to reject its Bitcoin ETF application. Geraci suggests that Grayscale, or another ETF issuer with sufficient resources, could challenge the SEC's reluctance to approve Ethereum ETFs.
Despite the lack of interest in futures-based ETFs that track the value of Ethereum, the largest altcoin, Geraci believes that Ethereum ETFs are still significant. This is due to Ethereum's $379 billion market cap, which makes it a major focus for analysts and issuers.