This year was expected to be an extremely active period for Ethereum, and its price had finally surpassed $4,000, albeit belatedly. However, recent developments indicate that Ether investors might have to wait longer for the anticipated rally. Particularly, today’s comments from a Bloomberg ETF Expert are likely to increase pessimism regarding ETH.
Will Ethereum ETF Be Approved?
No, at least that’s what Bloomberg ETF analyst James suggests, indicating that the decision expected on May 23 will not please investors. The fact that the SEC has not started discussions with ETH ETF issuers in recent months is a major factor feeding the negativity. In the final months of last year, the SEC was actively engaging with issuers months before granting ETF approvals.
Bloomberg’s ETF analysts Eric and James gave a 90% probability of approval for a BTC ETF because “the process was moving forward.” Time proved them right, but it seems that the situation for ETH might take longer. James wrote the following:
“Today or tomorrow, we are likely to hear about at least 3 Ethereum ETF postponements (2 of which have already been postponed). VanEck, Ark/21Shares, Hashdex, and Grayscale are expected to be delayed within the next ~12 days.
The only significant deadline is May 23. It has always been this way. My cautiously optimistic stance for ETH ETFs has changed compared to the last few months. Now we believe they will be definitively rejected on May 23. The SEC has not interacted with issuers regarding Ethereum details. This is the complete opposite of the process Bitcoin ETFs went through last fall.”
Ethereum and Its Future
Dencun was a significant upgrade that reduced transaction fees. The network has negative inflation and high interest in staking with an annual return of 4%. This limits the supply on exchanges. However, the latest statement from experts on the Ethereum ETF could pump pessimism into those expecting prices over $5,000.
In this situation, we might see people shifting to assets that could yield higher short-term gains. This could increase the selling pressure on ETH. After struggling to overcome the $4,000 resistance, the price of ETH fell to $3,202 and continues to stay below $3,300 as this article is being prepared.
