Ethereum Spot ETF May Not Be Approved, ETH Price Drops 6%

SEC skepticism stalls Ethereum ETF approval, causing a 6% price dip.
Ethereum Foundation under undisclosed government investigation.
Administrative instability triggers Ethereum and the broader crypto market downturn.

Analysts at Bloomberg Intelligence are progressively critical that a spot Ethereum ETF within the US will get approval in May. Analysts explained that the reason for the rejection of spot Ethereum ETFs was thanks to the recent SEC intervention. Amid ongoing discussions, ETHGate controversy takes the lead.

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James Seyffart, ETF analyst at Bloomberg Intelligence, said his optimistic stance on the Ethereum spot ETF has changed in recent months. “We are now confident that this will ultimately be rejected on May 23,” Seyffart says.

Seyffart explained that the reason for rejecting the spot Ethereum ETF was that there had been no meaningful involvement by the US Securities and Exchange Commission (SEC) with prospective issuers regarding the details of Ethereum (ETH). This is in contrast to the active talk around spot bitcoin ETFs before they got the green light in January.

As of specifically, Standard Chartered had expected that Ethereum (ETH) might reach $8,000 by the conclusion of this year and $14,000 by 2025. Bank inspectors recognize that the back of an Ethereum exchange-traded finance (ETF) will be a major catalyst for the cryptocurrency taking a toll, be that since it may, it appears that this will be troublesome to achieve.

Presently, the Ethereum Foundation is facing an investigation, and the SEC is examining whether ETH could be a security. Ether fell close to $3,200 and other cryptocurrencies weakened as administrative headwinds weighed on the advertising. Ethereum (ETH) dove as much as 6% on Wednesday in the midst of concerns that ETH exchange-traded funds face obstacles to getting US approval.

The Ethereum Foundation, the nonprofit organization that made a difference in creating the blockchain behind the second-largest cryptocurrency, is confronting a shrouded investigation from an anonymous government. The SEC launched a campaign to classify the Ethereum blockchain’s native token as a security, starting an examination after Ethereum moved to a proof-of-stake organized in 2022.