The digital assets industry is awaiting another bullish approval from the US Securities and Exchange Commission for the Ethereum Exchange-Traded Fund (ETF). Meanwhile, reports suggest that issuers are anticipating that the commission might deny their applications. Ethereum price is already dealing with an increased FUD around it.
Meetings over Ether ETF were one sided
VanEck, ARK Investment Management, and seven other issuers have filed their application with the commission to list Ether linked ETFs.
As per reports, the recent rounds of discussions between issuers and the SEC turned out to be one sided as the commission’s staff didn’t engage in the meeting. It added that the Commission has to decide on VanEck’s and ARK’s applications by May 23 and May 24, respectively.
It mentioned that the recent meetings between issuers and the SEC lacked detailed discussions compared to sessions that occurred before the agency approved spot bitcoin ETFs in January. The watchdog has not provided any sort of concerns or even asked questions that can suggest a potential rejection of the filings.
It is important to note that the denial over ETH ETF can prove to be a setback for the crypto market as it is hoping for approval. A positive outcome would make way for other similar products giving them a boost in the mainstream adoption of cryptos.
Is another dump incoming?
The expectation of a refusal is already hurting the bullish sentiments building around the biggest altcoin, Ethereum. This is visible in its price performance as Ether recorded a 35% surge on the year to date (YTD) basis while it still lags behind Bitcoin’s 50% rise.
Ether price has dropped by more than 15% in the last 30 days, while it has gained 2% over the past 7 days. ETH is trading at an average price of $3,084, at the press time. It is down by 36% from its all time high (ATH) of $4,891 recorded on November 16, 2021. Its 24 hour trading volume is up by 34% to stand at $15.2 billion.
This downward pressure on ETH price is expected to continue as market participants build expectations of a potential rejection. The second biggest crypto is holding a market cap of $376 billion.
The report mentioned that if the US SEC goes ahead to reject the ether ETF applications then some issuers anticipate legal challenges. They suggest that ether ETFs may eventually be approved through court interventions.
