Ethereum ETF: SEC weighs the pros and cons

Spot Ethereum ETFs are creating a buzz in the cryptosphere circles. With only a few days away from the crucial date, crypto experts express doubts about their emergence in May. TRON blockchain head Justin Sun concurs.

Ethereum ETFs: Justin Sun More Skeptical Than Ever

The United States Securities and Exchange Commission continues to drag its feet on Ethereum ETF applications, as it did with the Bitcoin Spot ETFs. Under the guise of protecting crypto investors, delays are piling up. Skeptics are plentiful.

This is the case for Justin Sun, who doesn’t place a big bet 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 a shot in the dark, 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 spot ETH ETF applications.

In his latest article dated April 28th, Sun stated that the cryptocurrency industry must brace itself for a long educational campaign with regulators. An assertion tinged with a hint of irony, reminding us of the omnipresence of cryptos despite institutional reluctance.

Rollercoaster Predictions

According to a scorching report from Reuters, hopes of seeing the SEC roll out the red carpet for Ethereum ETFs in May are dwindling. Recent weeks’ meetings between financial bigwigs and the market watchdog have been inconclusive.

Blackrock, VanEck, ARK Investment Management, and many others have knocked on the door of the SEC for their Ethereum ETFs. But the verdict, due for VanEck and ARK on May 23 and 24 respectively, is expected to be anything but unanimous.

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

Justin Sun: A Dossier Under the SEC’s Scrutiny

Meanwhile, 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 up against a legal arm-wrestling match.

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

Yet, Sun hasn’t lost sight of his assets. With nearly $1 billion in assets, including the stablecoin USDD valued at $280 million, his fortune remains a stake in this multi-front battle.