- The cryptocurrency investment space has been rife with speculation about the potential approval of Ethereum Spot Exchange-Traded Funds (ETFs). However, Bloomberg Intelligence analyst Eric Balchunas has expressed a pessimistic outlook, citing ongoing regulatory hurdles.
- Balchunas’ comments were in response to Grayscale CEO Michael Sonneshein’s optimistic stance on the approval of Ethereum spot ETFs. Sonneshein is confident that the SEC will approve the company’s request to convert its Ethereum trust into a spot ETF.
- Despite this, Balchunas believes that while the funds might be authorized in the future, it is unlikely to happen within a year. He also noted that Grayscale’s decision to withdraw its ETH futures ETF filed under the Securities Act of 1933 could be a strategic move to avoid paying the full cost of a massive ETF progress, as seen with the Bitcoin Spot ETFs.
Amid regulatory challenges, the possibility of an Ethereum Spot ETF approval seems bleak, according to Bloomberg Intelligence analyst Eric Balchunas. This comes in response to Grayscale CEO’s optimistic view of the approval of such funds.
Ethereum Spot ETF Pessimism Prevails
Eric Balchunas’ insights came in response to the Chief Executive Officer (CEO) of Fizen Leo Vu’s post regarding Grayscale’s CEO Michael Sonneshein’s optimism toward approval of Ethereum spot ETFs. According to Michael, he is very confident that the SEC will grant the company’s request to convert its Ethereum trust into a spot ETF. Balchunas, however, expressed his disagreement with the CEO’s claims, highlighting Bloomberg’s constant pessimism toward the products.
Grayscale’s Strategic Withdrawal
Balchunas further noted that Sonneshein mentioned that Grayscale decided to withdraw its ETH futures ETF filed under the Securities Act of 1933 because it wanted to concentrate more on its Spot ETF. The expert thinks a potential reason why Grayscale made the move might be because they do not want to pay the whole cost once more to give Blackrock a massive ETF progress, as seen following the approval of the Bitcoin Spot ETFs while taking a lot of criticism from people due to unlock outflows.
Shared View On Grayscale’s ETF Withdrawal
Scott Johnsson, a finance lawyer and author, has expressed his agreement with Bloomberg’s analyst overview. Johnsson may be in line with Balchunas’s perspective on why Grayscale withdrew its Ethereum futures; however, he believes by taking such action, the firm displayed its true intentions.
Conclusion
As it stands, the approval odds for Ethereum spot ETFs today now stand at merely 9%, indicating a nearly 90% drop since the first filings were made. This highlights the significant regulatory challenges and skepticism that continue to surround the approval of Ethereum Spot ETFs.
