ETH Price Surpasses $4,000 as Ethereum ETF Approval Odds Drop to 24%

The likelihood of the US Securities and Exchange Commission (SEC) approving a spot Ethereum ETF has decreased significantly. This is evidenced by market sentiment on platforms such as Polymarket, where the odds of approval are down to 24%.

Despite the crypto community's optimism earlier this year, recent developments show growing skepticism about the odds of SEC approval of an Ethereum ETF, especially ahead of the expected decision date ​on May 23.

Reduced optimism

Eleanor Terrett, a reporter at Fox Business, noted that there has been a significant change in the SEC's stance on Ethereum ETFs. Insiders say the SEC, under Chairman Gary Gensler, is less involved in Ethereum ETF discussions than its Bitcoin counterparts, hinting at potential satisfaction in the progress being made Bitcoin ETF approval.

Additionally, political pressure from figures such as Senator Elizabeth Warren, who has expressed displeasure with the SEC's approval of a Bitcoin ETF, appears to be influencing the regulator's approach to Ethereum products.

Regulatory delays

The SEC recently postponed its decision on various Ethereum ETF proposals, including those from financial giants BlackRock and Fidelity.

This has set the stage for further uncertainty despite the fact that market analysts had expected such an outcome. This delay signals a cautious approach from the SEC, reflecting their previous hesitation towards a Bitcoin ETF.

Eric Balchunas, senior analyst at Bloomberg, has downgraded expectations for the Ether ETF. Jake Chervinsky, Variant's chief legal officer, speculated the SEC's cautious approach was influenced by political resistance and market volatility.

Even so, the crypto industry remains hopeful, looking for potential signs of approval in future actions and comments by the regulator.

At the time of writing, ETH price once again surpassed the $4,000 mark but remains 18% below its 2021 peak of $4,878.


ETH price chart. Source: TradingView