- Analysts predict that the US Securities and Exchange Commission (SEC) may reject spot Ethereum (ETH) Exchange Traded Fund (ETF) applications, citing ETH’s ‘security’ status as the reason.
- These predictions have led to mixed reactions in the market, with ETH’s price experiencing a drop.
- Despite these speculations, the SEC has yet to make an official statement on the matter.
Analysts predict that the SEC may reject spot ETH ETF applications, stirring mixed reactions in the market and causing a drop in ETH’s price.
SEC’s Potential Rejection of Spot ETH ETF Applications
The US SEC has remained silent on the status of Ethereum [ETH] and whether it will approve the spot ETH ETF filings. However, recent developments suggest that the agency could reject the ETF applications, citing ETH’s security status as the reason. Bloomberg ETF analyst James Seyffart has doubled his odds of the SEC rejecting the applications, stating that the SEC is likely considering ETH as a security.
Mixed Market Reactions to Possible Rejection
The market has been anticipating a rejection of ETH ETF applications in May, and these recent developments could provide some insight into the SEC’s possible grounds for rejection. Nate Geraci of ETF Store, however, isn’t convinced that the SEC has a sound basis for rejecting the spot ETF applications. He cites the recent removal of staking features and existing ETH futures among other factors, questioning the SEC’s rationale for rejection.
Impact on ETH’s Price
The speculation surrounding the SEC’s possible rejection and the raising of ETH’s ‘security’ status has led to a drop in ETH’s price. The cryptocurrency has been in a price downtrend since mid-March, a bearish market structure that could push ETH to $2500 or lower.
Conclusion
While the SEC has yet to make an official statement, the market is already reacting to the possibility of the agency rejecting spot ETH ETF applications. The impact on ETH’s price is evident, and it remains to be seen how the situation will unfold in the coming weeks.
