Ethereum ETF Optimism Drops As The SEC Delays Hashdex’s ETF Approval

• James Seyffart believes the SEC will ultimately deny the spot ETH ETFs by May 23.
• Seyffart thinks the SEC hasn’t engaged with issuers on Ethereum specifics, unlike with Bitcoin ETFs.
• Eric Balchunas also thinks ETH ETFs will be delayed but will eventually happen in the long term.

James Seyffart, a renowned ETF analyst, believes the U.S. Security and Exchange Commission (SEC) will ultimately deny the spot Ethereum ETF applications by May 23, 2024. In a recent post on X, Seyffart noted that his cautiously optimistic attitude towards ETH ETFs has changed recently. According to him, the SEC hasn’t engaged with issuers on Ethereum specifics, an exact opposite scenario to the Bitcoin ETFs this fall.

Seyffart stated his position after the SEC published a notice delaying the Hashdex Ethereum ETF application on March 19. He believes the SEC will publish more delays in the coming days. According to him, VanEck, Ark/21Shares, and Grayscale are all due for delays in the next 12 days.

Meanwhile, the analyst noted the delays do not come as a surprise, as he thinks the only deadline that matters is May 23. A position he has always maintained right from the beginning, as he highlighted in his previous post from February 6, after the SEC delayed Invesco’s and Galaxy’s ETH ETF approvals.

The chances of an Ethereum ETF approval continue to diminish, with industry stakeholders showing less optimism toward its actualization. On March 11, Senior ETF Analyst for Bloomberg, Eric Balchunas, noted that the odds of an ETH ETF approval were down to 35%. According to him, the signs that led to the Bitcoin ETF approval last January are missing for the Ethereum ETF .

Despite the low level of optimism, Balchunas thinks the SEC will only delay the Ethereum ETF actualization by not approving it on May 23. However, he remains positive that it will happen in the long term.
ETH’s price dropped significantly on Tuesday following the SEC’s delay in Hashdex’s ETF approval. The flagship altcoin slumped over 10% on Tuesday, marking the largest single-day drop since the beginning of 2024. ETH traded for $3,229 at the time of writing, according to data from TradingView.