Bloomberg analyst sees SEC’s lack of comment on Ethereum ETF as an unfavorable indication

The United States Securities and Exchange Commission’s lack of communication regarding Ether (ETH) exchange-traded funds (ETFs) is causing concern for those anticipating Ether ETF approvals by May. Bloomberg ETF analyst Eric Balchunas has downgraded the chances of Ether ETF approval to 35%, citing several reasons for his decision. Balchunas highlights the absence of contact or comments from the SEC to the issuers as a troubling sign. He explains that the SEC needs to provide comments, and the issuers must address them, which can be a lengthy process. Balchunas also suggests that the SEC may intentionally be giving the silent treatment to prospective fund issuers. He adds that SEC Chair Gary Gensler’s view on Ether as a security could play a role in the decision, as Gensler may be hesitant to face further backlash. Balchunas believes that the ETF process for Ether feels different from the spot Bitcoin ETF race and senses that something is amiss. He acknowledges that this is a personal judgment but considers it an important factor. Others in the industry, such as Nate Geraci and Matt Corva, have also expressed their thoughts on the matter. Geraci finds it strange that the SEC approved ETH futures ETF products but not spot products, without providing a clear explanation. Corva suggests that an ETH ETF denial could be beneficial in the long run. Despite the uncertainties, Balchunas remains confident that a spot Ether ETF will eventually be approved, and he believes that the upcoming U.S. presidential election could be a significant factor in the decision-making process.