Can Ethereum spot ETF become a new narrative in May?

Original | Odaily Planet Daily

Author | How to

With the approval of the Bitcoin spot ETF at the beginning of the year, funds from traditional finance have been pouring into the crypto world in the past few months. Especially after Bitcoin completed its halving, the new round of market narrative focus has once again returned to ETFs – Ethereum spot ETFs.

Now that the deadline for the key decision on the Ethereum spot ETF (May 23) is getting closer, judging from the remarks of celebrities and the unusual market movements, the outlook does not seem optimistic.

Odaily Planet Daily organizes the markets opinions on whether the US Ethereum spot ETF can be approved, and analyzes it based on the current development status of global crypto asset ETFs.

Ethereum Spot ETF Recent Status

The application for the US Ethereum spot ETF was first submitted by VanEck on October 27 last year, followed by 21 SharesArk, Hashdex, Grayscale, InvescoGalaxy, Fidelity, BlackRock and Bitwise. However, according to the previous SEC approval process for Bitcoin spot ETFs, a decision will be made within the deadline of the first ETF application, which is 240 days in total, and the final date is May 23 this year.

However, unlike the optimistic expectations before the approval of the Bitcoin spot ETF, the market does not have much hope for the approval of the Ethereum spot ETF. The main reason is that Ethereum has switched from PoW to PoS, and there is controversy over whether Ethereum should be considered a security. However, the SEC has not expressed any opinion on this. If the SEC does not approve the Ethereum spot ETF, it will indirectly confirm the conclusion that Ethereum is a security, which will result in the possibility that most altcoins on the market will not be able to apply for ETFs in the future. For more details about this content, please read the previous article Is there still hope for Ethereum spot ETF? What risk points is the SEC blocking?

Currently, industry celebrities and institutions in the market do not have much hope that the Ethereum spot ETF will be approved before May 23.

The latest to speak out was TRON founder Justin Sun, who believes that the Ethereum spot ETF will not be approved in May, and said that the crypto industry still needs to prepare for long-term education from regulators, with a focus on helping them understand crypto.

Jan van Eck, CEO of VanEck, the first issuer to apply for an Ethereum spot ETF, also said, “We may be the first applicant to be rejected in May.” Another source revealed that the SEC is expected to reject VanEck and ARK’s applications to launch an Ethereum spot ETF.

On-chain prediction market Polymarket, crypto market maker GSR and Bloomberg analysts have reduced the likelihood of approval of the Ethereum spot ETF to around 20%. GSR even predicts that the approval process for the Ethereum spot ETF may be extended to 2025 to 2026.

However, Grayscale still maintains high confidence in the approval of the Ethereum spot ETF.

In addition, the recent flow of ETH on exchanges and chains has been unusually frequent. The author has observed a continuous net outflow of ETH from exchanges. According to CoinCarp data, the net outflow of crypto exchanges exceeded 380,000 ETH in the past 30 days.

On April 28, the Franklin Ethereum spot ETF code EZET was listed on the DTCC website, which led to an increase in Ethereum prices, and three new whales withdrew 11,557 ETH from Binance, and then the suspected Sun Yuchen address accumulated 6743 ETH again. However, today, many addresses also transferred ETH to exchanges, and different trading operations also proved that the market had different opinions on the final resolution of the Ethereum spot ETF.

in conclusion

On April 30, the Hong Kong Ethereum spot ETF will be officially open for trading. If investors are enthusiastic about trading and the trading situation is good, it may affect the SECs views, and relevant institutions will lobby the SEC. However, judging from the recent trends of the US Ethereum spot ETF and the views of relevant institutions, the possibility of approval seems small.

Here, Odaily Planet Daily reminds everyone to pay attention to price fluctuations and reduce trading risks.

This article is sourced from the internet: Can Ethereum spot ETF become a new narrative in May?

Related: Will Bitcoin (BTC) Price Fall Below $60k This Week?

In Brief Addresses holding between 100 and 1,000 BTC became stable since March 25, indicating these whales are not accumulating more BTC. RSI 7D is currently at 69, dropping from 76 at the end of March, indicating BTC could be cooling off in the short term. EMA Lines is almost forming a death cross, which could trigger a downtrend for BTC. The Bitcoin (BTC) price outlook is cautious as whales with 100 to 1,000 BTC stabilized their holdings since March 25, indicating a pause in accumulation. Concurrently, the RSI dropped from 76 to 69, suggesting a short-term cooling. Moreover, EMA lines are nearing a death cross, potentially signaling an upcoming downtrend for BTC. These indicators collectively point towards a guarded stance for Bitcoin’s near future. Bitcoin Whales Slow-Down Accumulation Since…