Spot Ethereum ETF: Is The Current Silence Early Sign Of Denial?

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The digital currency ecosystem is at a standstill as expectations for a decision on VanEck’s spot Ethereum ETF product build-up. The US Securities and Exchange Commission (SEC) is expected to give its feedback on VanEck’s application today and the silence thus far is stirring bearish conspiracies across the board.

Will SEC Deny Spot Ethereum ETF?

Until now, the top Bloomberg ETF Analysts Eric Balchunas and James Seyffart have maintained a positive disposition on the likelihood of approval. In a recent update shared by Balchunas, he noted that while there’s no chatter to hold onto yet, he claimed that two people on X have revealed that the applications were denied.

With silence from the SEC and the two news bearers not revealing their sources, it becomes difficult to make a forecast. However, giving a perspective on the trend, Balchunas noted that the delay is not out of place. According to him, the Trading & Markets Division at the SEC was informed of the potential plans to approve at the 11th hour.

UPDATE: there is no update yet. We waiting to hear something. Saw two dif ppl on here claiming it is delayed (without saying their source) till later tonight, but we can’t confirm this with anyone yet. That’s all we know rn. @JSeyff

— Eric Balchunas (@EricBalchunas) May 23, 2024

The Bloomberg ETF Analyst said it is possible that the Trading & Markets has prepared rejection letters for VanEck’s offering. If this hypothesis is the case, which is hard to confirm, working back toward approval might take time.

The digital currency ecosystem, particularly the crypto supporters on X are very passionate and require proper management since anticipation is very high. To give his reassurance, Balchunas noted that everything the Bloomberg team have heard thus far says the spot Ethereum ETF product will be approved.

Crypto Market Response

The tension in the crypto ecosystem regarding the spot Ethereum ETF products have seeped to the prices of cryptocurrencies. At the time of writing, Bitcoin (BTC) has dropped by 2.34% to $67,770 to lead the current market reversal.

Ethereum is still managing its earlier recorded growth. The coin is up 2.89% to $3,873.74, however, its current price is down from its 24 hour high of $3,943.55. As the digital currency in the spotlight at the moment, it remains to be seen how Ethereum’s price will react to any potential decision from the SEC.

Should there be an approval, the price of the coin might retest its All-Time High (ATH) at $4,891.70. If the verdict on VanEck’s offering is a rejection, it might also derail its growth and fuel a price drop back to the $3,000 support.

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