Bloomberg analyst deems SEC’s lack of commentary on Ethereum ETF as worrisome.

The United States Securities and Exchange Commission’s lack of communication regarding Ether (ETH) exchange-traded funds (ETFs) is not a good sign for those hoping for Ether ETF approvals by May, according to Bloomberg ETF analyst Eric Balchunas. Balchunas believes that the chances of Ether ETF approval have now been downgraded to just 35%. He highlighted the fact that there has been no contact or comments from the SEC to the issuers, which is concerning considering the approaching final deadline. Balchunas also suggests that the SEC may be intentionally giving the silent treatment to prospective fund issuers. Additionally, SEC Chair Gary Gensler’s stance on Ether as a security and his unwillingness to face political blowback may play a role in the approval process. Balchunas also mentioned that the ETF process for Ether feels different from the spot Bitcoin ETF race. While this is his personal judgment, it is an important factor in his assessment. Others in the industry have also questioned the SEC’s decision to approve ETH futures ETF products but not spot products. However, some believe that an ETH ETF denial could be positive in the long term. The meeting between Coinbase, Grayscale, and SEC officials to discuss a rule change for spot Ether ETFs may not necessarily indicate a positive outcome for Ether ETF approval. The meeting primarily focused on the correlation between ETH and BTC futures prices compared to spot prices, which could be used as grounds for approval or denial. If all pending Ethereum ETF applications are rejected, the next important date to watch would be the U.S. presidential election day. Balchunas believes that a spot Ether ETF is a matter of when, not if, and is confident that approval will happen eventually.