Bitrabo Editorial
The likelihood of Ethereum Spot Exchange-Traded Funds (ETFs) receiving approval has been a topic of much scrutiny in the cryptocurrency investment sector. Senior Bloomberg Intelligence analyst Eric Balchunas recently expressed a negative outlook on these products, emphasizing the increasing skepticism regarding approval by the United States Securities and Exchange Commission (SEC).
Expert Evaluation of Ethereum Spot ETF Prospects
Eric Balchunas’ remarks were prompted by Fizen CEO Leo Vu’s discussion on Grayscale CEO Michael Sonneshein’s positive stance on Ethereum spot ETFs’ approval. Despite Sonneshein’s confidence in the SEC’s approval of Grayscale’s Ethereum trust conversion, Balchunas remains doubtful. While he does foresee potential authorization in the future, he believes it might not happen within a year, with external factors such as the November election and Grayscale’s statements on denial playing crucial roles in altering predictions.
Balchunas also highlighted Grayscale’s decision to retract its Ethereum futures ETF filing under the Securities Act of 1933 to shift focus to the Spot ETF. This strategic move was possibly motivated by avoiding duplicated expenses and potential backlash post-approval, which was observed with Bitcoin Spot ETFs.
Consensus on Grayscale’s ETF Strategy
Balchunas’ analysis has stirred discussions within the cryptocurrency community. Finance lawyer Scott Johnsson echoed Bloomberg’s skepticism, aligning with Balchunas’ rationale behind Grayscale’s ETF maneuvers. Johnsson acknowledged Grayscale’s strategic intentions and emphasized the need for transparency and congruence in their actions.
The overall sentiment regarding Ethereum spot ETF approval has significantly dwindled, with current odds standing at a mere 9%, marking a sharp decline from the initial filings.