Prospects for the approval of a spot Ethereum ETF in May do not look so clear. This is the conclusion reached by senior ETF analyst #Bloomberg Eric Balchunas last week. And today he added that he estimates the probability of approval at 35%.
Commenting on the news about the March 6 meeting between representatives of the Coibase crypto exchange and the US Securities and Exchange Commission (SEC), he said that the SEC did not comment on applications for spot Ethereum ETFs, unlike the case with#BitcoinETF:
“Normally I would say that this (meeting between representatives of the crypto exchange and the regulator) is a good sign, but, as far as I know, the regulator’s staff has not yet given any comments to the issuers, which is not a good sign...”
Balchunas also stated that there is a weak correlation between spot#ETHand the future Ethereum ETF, which, in his opinion, also indicates less favorable prospects. Although, taking into account the fact that there are still 2.5 months until the first final deadline for the Ethereum ETF, and the price has already broken through $4,000, it is not entirely clear why Balchunas is confused by the price of #ETH.
Today he continued his thoughts in X in conversation with FOX Business crypto journalist Eleanor Terrett. She also wrote that the time is clearly approaching the May deadline, and there is still no meaningful participation from SEC staff in reviewing applications. Although she admits that in April/May everything could go parabolic.
In response, Balchunas gave an opinion about that same 35% probability:
“Yes, our chances of approval of the Ethereum ETF by the May deadline are reduced to 35%. I understand all the reasons why they SHOULD approve it (and we personally think they should), but all the signs/sources that made us bullish on the BTC spot price for 2.5 months are missing this time . Note. 35% is not 0%, it is still possible and we think it will happen in the long run.”
