For May, such weakness on the Ethereum front was not anticipated. Generally, the year 2024 has been a disappointment for ETH. The SEC took a very tough stance against Ethereum and the scenario expected after the BTC ETF approval did not materialize. So, what does the SEC’s latest move mean?
Spot Ethereum ETF
Just a few minutes ago, the SEC officially announced the postponement of the Spot Ether ETF application made by Grayscale. These decisions are not surprising, and the real issue will unfold in the second half of this year when the final decision date for BlackRock’s ETF application arrives. If the SEC rejects the ETF application made by BlackRock, then the approval score of the institution that has only been rejected once in 576 applications will also drop. The SEC’s avoidance of frequent meetings with potential issuers during the BTC ETF approval process also strengthens this possibility.
ETF experts are seeing weakened expectations for an ETH ETF approval this year. The regulatory body, which directly targets the Ethereum Foundation and has moved to label Ethereum as a security, clearly expresses concerns about issues such as the risks brought by the density of stakers and the power of the ETH Foundation over the token following the PoS transition.
The issue is that if ETH had not made the PoS transition, scenarios such as the environmental damage caused by miners would have occupied the agenda. Let’s see if Blackrock and Fidelity can surprisingly get approval. The ETH price was above $3,200 at the time this article was prepared.
