Bloomberg Analyst: Ethereum Spot ETF Unlikely to Pass in May! ETH Plunges to $3150 Temporarily

With the US Securities and Exchange Commission (SEC) postponing its decision on the Ethereum spot ETF proposals by Hashdex and ARK 21Shares yesterday, Bloomberg analyst James Seyffart is pessimistic that the Ethereum spot ETF will ultimately be rejected in May.
(Prior Summary:
Fidelity applies to add “staking” services to its Ethereum spot ETF to generate more revenue! Lido and RocketPool surge in response.
)
(Background Supplement:
Should we prepare for the rejection of the Ethereum spot ETF? Three possible reasons for SEC’s denial
)
Table of Contents:
Analyst: Ethereum Spot ETF Will Not Be Approved in May
Ethereum briefly drops to $3,150
Grayscale seeks shareholder approval to add “staking” feature
The US Securities and Exchange Commission (SEC) has postponed its decision on the Ethereum spot ETF proposals by Hashdex and ARK 21Shares for the third time on the 19th, and the final deadlines for these two Ethereum spot ETF applications are May 30th and May 24th, respectively.
VanEck and Grayscale also have Ethereum spot ETFs that will face their third deadline for review.


In response, Bloomberg ETF analyst James Seyffart stated that he expects to see the SEC further postpone its decision on the Ethereum spot ETFs by these two issuers today or tomorrow. It is worth noting that he now seems concerned about the possibility of approval for the 8 Ethereum spot ETFs:
Meanwhile, Bloomberg ETF analyst Eric Balchunas also turned pessimistic, stating:
He previously pointed out that unlike Bitcoin spot ETFs, Ethereum ETFs have not had successful legal battles after being rejected, and the correlation between Ethereum spot and futures is not as strong as Bitcoin ETFs, so the final outcome may not be optimistic.
Seyffart’s concerns align with those of several other analysts or experts. On the 11th, Fox Business reporter Eleanor Terrett also revealed that the SEC has not been pushing the approval process forward as meaningfully as it did for Bitcoin spot ETFs.
Shortly after Bloomberg analyst released his pessimistic view, Ethereum (ETH) dropped to a low of $3,150 this morning and rebounded to $3,237 at the time of writing, marking an 8.68% decline in the past 24 hours.
If there is no good news following this, the expectation for ETH to continue rising may weaken.


ETH Spot | Image Source: Binance
Asset management firm Grayscale is considering adding a “staking” feature to its Ethereum spot ETF application. In a “solicitation of consent statement” sent to investors in the Grayscale Ethereum Trust, the company proposed the ability to collateralize the Ether held by the trust.
Grayscale stated that collateralizing Ether in the trust can help “mitigate the inflationary pressure from the Ethereum POS protocol” and align with similar investment products that offer staking services.
The proposal requires approval from over 50% of shareholders to pass. If approved, Grayscale will join companies such as ARK 21Shares, Franklin, and Fidelity, which recently added Ether staking features to their Ethereum spot ETF applications.
Further reading:
Fidelity applies to add “staking” services to its Ethereum spot ETF to generate more revenue! Lido and RocketPool surge in response


Related Reports
SEC postpones Invesco/Galaxy Ethereum spot ETF! Bloomberg analyst reiterates May 23rd as the key date
Will the Ethereum spot ETF be rejected in May? Chairman Gary Gensler: I will never reveal
Difficulties for Ethereum spot ETF in May? SEC shows negative attitude, anti-crypto lawmakers take action to obstruct