Bloomberg ETF Analyst: Ethereum Spot ETF Application May Be Rejected

According to DL News, Eric Balchunas, an ETF analyst at Bloomberg, stated that the US SEC may reject the application for an Ethereum spot ETF on May 23 due to a lack of meaningful interaction with potential issuers, as well as the unclear regulatory status of Ethereum.Balchunas also stated that this means a spot Ethereum ETF may not appear until the end of 2025.In response to the rejection, potential ETF issuers such as BlackRock, Fidelity, or Ark Invest will face two options: either sue the SEC like Grayscale did with their Bitcoin spot ETF, or file another lawsuit later.Factors that may affect this decision include the US presidential election. If former President Donald Trump wins a second term in the White House, the US Securities and Exchange Commission may face a change in leadership. The new chairman may be more friendly towards cryptocurrencies than Gary Gensler.