In what is a reversal from its previous stance, Standard Chartered has said that a Spot Ethereum ETF approval is not likely to arrive in May. Indeed, the bank has recently revised its outlook regarding the ETH investment vehicle and the impending decision from the US Securities and Exchange Commission (SEC).
All eyes have been on the digital asset to follow Bitcoin’s Spot ETF approval earlier this year. The SEC had greenlit 11 of the BTC investment vehicles in what has certainly been a beneficial development for the industry. Yet, it doesn’t appear as though Ethereum’s iteration of the product is set to arrive in the coming month.
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Standard Chartered Reverses Forecast for Spot Ethereum ETF in May
At the start of 2024, the digital asset industry awaited with bated breath the arrival of Spot Bitcoin ETFs in the United States. The inaugural approvals were expected to have an undeniable impact on the market. Just four months into the year, that has proven to have been the case.
Now, the market is anticipating what asset could be next in line for the investment offering. Although there were high hopes for an arrival this month, that has changed. Indeed, Standard Chartered has stated that a Spot Ethereum ETF approval is unlikely for May
Also Read: Hong Kong To Approve Spot Bitcoin & Ethereum ETFs By Monday
The revised expectation is a reversal of what the bank had previously predicted. Specifically, it slated an Ethereum ETF arrival for May 23rd. Geoffrey Kendrick, head of the bank’s forex and digital asset research, notes the prediction was connected to an approval process similar to that of the aforementioned Bitcoin ETF.
The original prediction expected a “constructive dialogue,” between the SEC and applicatants. “So far, no such dialogue has occurred (or at least been made public), suggesting that a MAy 23 approval date is unlikely,” Kendrick said according to a report from The Block.
On Tuesday the SEC delayed its decision on Spot Ethereum ETFs. Moreover, the absence of necessary discussions makes the entire process all the more worrisome. Those conversations must take place if approval is to be granted. However, the SEC has not been shy about its mounting campaign against ETH. The agency had reportedly been seeking to reverse its security status.