Bloomberg Analysts Cast Doubt on Ethereum ETF Approval by May

In a surprising turn of events, Bloomberg analysts have revised their forecasts for the approval of a spot Ethereum exchange-traded fund (ETF), now estimating the likelihood at just 35% by the upcoming May deadline. This marks a significant decrease from earlier predictions, which suggested a 60% to 70% chance of approval.

Senior ETF analyst Eric Balchunas highlighted the change in sentiment, noting that the factors that previously fueled optimism for a Bitcoin spot ETF are absent in the case of Ethereum. “Yeah, our odds of ETH ETF approval by May deadline are down to 35%,” Balchunas tweeted. “I understand all the reasons they SHOULD approve it, and we personally believe they should, but the signs/sources that made us bullish 2.5 months out for BTC spot are not there this time.”

Despite the lowered expectations, Balchunas emphasized that a 35% probability is not equivalent to zero, maintaining that approval is still possible. He remains hopeful for the long-term prospects, believing that an Ethereum ETF will eventually materialize.

The shift in Bloomberg’s stance reflects the ongoing uncertainty and regulatory challenges facing cryptocurrency ETFs. While the market has seen the introduction of various crypto-related investment products, the approval of an ETF based on Ethereum would be a landmark event, potentially paving the way for broader institutional adoption.

Investors and enthusiasts are closely monitoring the situation, as the SEC’s decision could have far-reaching implications for the future of cryptocurrency investments and the mainstream acceptance of digital assets.

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