TechFlow news, according to DL News, Bloomberg ETF analyst Eric Balchunas said the U.S. SEC may reject spot Ethereum ETF applications on May 23 due to a lack of meaningful engagement with potential issuers and the unclear regulatory status of Ethereum.
Bloomberg Intelligence ETF analyst Eric Balchunas stated this implies a spot Ethereum ETF might not arrive until the end of 2025.
In the face of rejection, potential ETF issuers such as BlackRock, Fidelity, or Ark Invest would face two options: either sue the SEC as Grayscale did with its spot Bitcoin ETF, or refile their applications later.
Factors influencing the situation include the U.S. election. If former President Donald Trump wins a second term in the White House, the Securities and Exchange Commission could see leadership changes. A new chair may be more crypto-friendly than Gary Gensler.
