Tron founder Justin Sun has expressed skepticism regarding the likelihood of the Securities and Exchange Commission (SEC) approving a spot Ethereum exchange-traded fund (ETF) in the coming month.
Echoing sentiments shared by several analysts, Sun’s latest remarks align with expectations of a potential rejection of spot Ether ETF applications by the SEC. In a recent statement on X, Sun emphasized the need for continued education efforts to foster understanding between the crypto industry and regulators.
Dim Outlook for Spot Ethereum ETF Approval
Financial firms in the U.S. have also tempered expectations, with discouraging meetings with the SEC in recent weeks suggesting an unlikely approval for spot Ethereum ETFs in May. Notably, issuers like Blackrock, VanEck, and ARK Investment Management have submitted applications, but the SEC’s approach appears less favorable compared to previous spot Bitcoin ETF approvals.
According to reports, the SEC is slated to review VanEck’s and ARK’s applications by May 23 and May 24, respectively. However, Bloomberg ETF analyst Eric Balchunas pegs the probability of spot Ether ETF approval in May at around 35%, citing the SEC’s less proactive stance compared to Bitcoin ETF applications.
Sun’s Legal Struggles with the SEC
Sun’s commentary comes amidst ongoing legal battles with the SEC, which recently sued him for alleged fraud, market manipulation, and offering unregistered securities. The lawsuit accuses Sun and related crypto entities of violating federal securities laws by selling unregistered securities like Tronix (TRX) and BitTorrent (BTT).
Sun’s Financial Holdings Under Scrutiny
In updated court filings, the SEC highlights Sun’s extensive travel to the U.S. for work related to Tron Foundation, BitTorrent Foundation, and Rainberry. Sun’s significant financial holdings, including approximately $1 billion across multiple wallets, have drawn attention, with the largest portion attributed to the $280 million USDD algorithmic stablecoin, as per Arkham’s data.
Conclusion: Regulatory Hurdles Persist
Justin Sun’s skepticism regarding Ethereum spot ETF approval reflects broader uncertainties surrounding regulatory hurdles in the crypto space. As legal battles with the SEC continue, the fate of spot Ether ETFs remains uncertain, underscoring the need for ongoing dialogue and education between the crypto industry and regulatory authorities.
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