The US Securities and Exchange Commission (SEC) is expected to deny Spot Ethereum ETF approval next month, according to insiders. Indeed, a report from Reuters notes that the ongoing meetings between issuers and the SEC have dampened expectations, with rejection likely in May.
The report fortifies industry-wide expectations of Ether ETF rejections next month. That was first forecasted by Standard Chartered, and corroborated by insider testimony. However, the description of the ongoing meetings regarding the investment offering leaves little optimism of an impending approval.
Also Read: Hong Kong Bitcoin & Ethereum ETFs to Begin Trading April 30th
Spot Ethereum ETF Approval Now in Doubt?
Since the arrival of Spot Bitcoin ETFs at the start of the year, the market has awaited what assets could be next. The positive impact that BTC offerings have had on the market as a whole has led many to opine about what another ETF could mean for furthering the industry.
However, such an approval has seemingly reached a critical point. According to a report today, Ethereum ETF approval is increasingly doubtful as noted by insiders with knowledge of the ongoing meetings. Specifically, they have assured that an approval is not to take place in the coming month.
Also Read: Ethereum ETFs To Face Rejection By May, VanEck CEO Claims
However, that is all the more disheartening by the reports of discussion in meetings between the SEC and issuers. The report describes those meetings as “one-sided” with the agency not discussing “substantive details about the proposed product.”
Those developments greatly contradict what took place before Bitcoin’s Spot ETF approval. The meetings in the lead-up to that decision featured “intensive and detailed discussions” between both sides. Subseuqnlety, it showed the seriousness of the SEC in finally reversing its position on the investment offering.
The positive taking place for an Ethereum ETF signals a far gap between the SEC’s willingness and issuers’ desire. Subseuqnlety, a plethora of issers have already re-filled applications amid yet another delay from the agency. These ongoing discussions should continue to describe the timeline of when an Ether ETF could see approval.