Ethereum ETF's Fate Is Not Clear, Still Waiting For SEC's Decision

The SEC is still delaying the Ethereum ETF submission proposal. (Photo; Doc. ETF)

Billy Markus, founder of Dogecoin, admits he doubts Ethereum's Exchange-Trad Fund (ETF) will be approved by the United States Securities and Exchange Commission (SEC). Markus highlighted that if the SEC had not been able to restore its integrity, hopes for the approval looked gloomy.

The SEC's decision on Ethereum's ETF proposal submitted by VanEck and ARK Invest is scheduled to be announced on May 23 and 24. Although many expect the ETF's proposal to be approved, skepticism remains in place, especially after Markus' comments confirming that the SEC is currently in a "compromised" condition. This view is reinforced by Scott Johnsson, a financial lawyer who questioned Ethereum's classification as a securities-like asset, in contrast to Bitcoin, which has received the green light for the ETF.

Reported by CoinSpeaker, Rohan Shah, Co-founder and CEO of Decimal Digital Currency, argues that the SEC is not ready to approve Ether-based ETF. SEC chairman Gary Gensler has publicly declared Bitcoin a commodity, but Ethereum is still in the gray zone. Consensys, a blockchain company, even took legal action against the SEC in April to prove that Ether is not a security.

A significant discount on the Grayscale Ethereum Trust (ETHE) is 24.73% and the price of Ethereum which is still below the nominal value on May 16 reflects market uncertainty against ETF approval. On the other hand, the Grayscale Bitcoin Trust (GBTC) has shown a discontinuation reduction, supporting arguments to convert to ETF.

In the short term, the price drop of Ethereum is expected to occur as investors prefer Bitcoin. Ether only experienced a 61% price increase last year, trailing from Bitcoin, which rose by 142%, signaling greater investor skepticism towards Ethereum.

The SEC's decision to be announced on May 23 and 24. This is an important moment for the Ethereum community. Although regulatory issues related to Ether's status still haunt, hopes for wider adoption remain in the future.