Ethereum: Analysts see ‘dismal’ future for Ethereum ETF, but why?

• Bloomberg analysts say the chances of an ETH ETF getting approved are still slim.
• In case of rejection in May, the program could be affected by the US elections.

Bloomberg senior ETF analyst Eric Balchunas maintains a low likelihood of approval Ethereum (ETH) ETF In May. Even the recent Bitwise ETH ETF filing and correlation analysis has not swayed the analyst’s position.

On March 28, Bitwise introduced a new Form 19B-4 With correlation analysis to meet SEC criteria, as seen during the Bitcoin BTC ETF spot application.

the signature fixed,

“This is the first ETH correlation analysis that replicates the specific methodology used by the SEC in evaluating Bitcoin, and the results are encouraging.”

High Correlation, but ETH ETF Prospects Remain Low

Jake Chervinsky, chief legal officer of Variant Fund, praised the correlation analysis;

“Here’s some great work from Bitwise, which shows an exceptionally close correlation between spot and ETH futures using the SEC methodology.

Chervinsky said the bitwise analysis could make it difficult for the SEC to reject an ETH ETF based on correlation.

But Nate Geraci of ETF Stores took heavy punch In SEC;

“It is sad that we require an ETF issuer to conduct correlation analysis showing that futures contracts approved by government agencies closely follow the price of the underlying asset…

And a peer government agency has approved ETFs that hold such futures, but will not approve the underlying ETF.

However, in his rebuttal, Bloomberg ETF analyst Eric Balchunas said the developments do not improve the chances of approval.

“Deadline is 7 weeks away and SEC radio silence = critical”

Also, Balchunas noted If rejection occurs in May, the program may have to be readjusted for the US elections.

“Next elections. Then see what the scenario looks like.

This means that eligible investors may have to wait longer for ETH spot ETF approval if the May deadline is missed.

This is an automatic translation of our English version.