Ethereum ETF: SEC Weighs Pros and Cons

Ethereum Spot ETFs are making waves in the crypto sphere circles. With the critical date approaching, crypto experts are casting doubts on their rollout in May. Justin Sun, the head of TRON blockchain, agrees.

Ethereum ETF: Justin Sun More Skeptical Than Ever

The United States Securities and Exchange Commission is still stalling on Ethereum ETF applications, much like it did with Bitcoin Spot ETFs. Under the guise of protecting crypto investors, delays keep piling up. The skeptics are many.

This includes Justin Sun who isn’t betting big on their imminent approval, if we refer to this article from Crypto News.

My honest opinion (NFA) is that an Ethereum ETF won't be approved in May. The crypto industry still needs to prepare for a long-term education with regulators, focusing on helping them understand crypto. But we've always been here, haven't we?

— H.E. Justin Sun 孙宇晨 (@justinsuntron) April 28, 2024

This is not an empty prophecy, but rather a trend that is gaining momentum. Sun thus joins the cohort of skeptical crypto analysts, all convinced that the SEC will slam the door on the spot ETH ETF requests.

In his latest pamphlet dated April 28, Sun stated that the cryptocurrency industry must prepare for a long educational campaign with regulators. An assertion tinged with a hint of irony, recalling the omnipresence of cryptos despite institutional reluctance.

Predictions See-Sawing

According to a scorching report by Reuters, hopes for the SEC to roll out the red carpet for Ethereum ETFs in May are dwindling. Recent weeks have seen little success in meetings between financial bigwigs and the market watchdog.

Blackrock, VanEck, ARK Investment Management, and many others have knocked on the SEC’s door for their Ethereum ETFs. But the verdict, due for VanEck and ARK on May 23 and 24 respectively, looks anything but unanimous.

Compared to Bitcoin ETFs, which got the green light in January, the approval prospects seem more nebulous. Eric Balchunas, ETF analyst at Bloomberg, estimates only a 35% chance of a May approval.

Justin Sun: A File Not So Clean in the SEC’s Eye

At the same time, Justin Sun, the face of Tron (TRX), is navigating troubled waters with the Securities and Exchange Commission. Accused of fraud and market manipulation, Sun is facing a legal tug-of-war.

The SEC accuses Sun and his crypto companies of selling unregistered securities, including Tronix (TRX) and BitTorrent (BTT). In this dance of accusations, the SEC points to Sun’s multiple trips to the United States, under the banner of the Tron Foundation, BitTorrent, and Rainberry.

Yet, Sun does not lose sight of his assets. With nearly $1 billion in assets, including the USDD stablecoin valued at $280 million, his fortune remains at stake in this multifaceted battle.