As the deadline for the U.S. Securities and Exchange Commission (SEC) decision on Ethereum Exchange-Traded Funds (ETFs) approaches, skepticism mounts among industry experts. Leading the discourse, crypto analyst Michaël van de Poppe has expressed doubts about the approval of Ethereum Spot ETFs this May. His views are shared by others in the field, including MicroStrategy CEO Michael Saylor, who also casts a pessimistic forecast regarding the future of Ethereum ETFs.

Three of the seven applicants, VanEck, Ark 21 Shares, and Hashdex Nasdaq, are at the forefront of this battle. They face an uphill task as the SEC continues to scrutinize the underlying securities issues. Van de Poppe suggests the SEC is likely to postpone the approval process rather than outright deny these applications. This decision could shift the focus towards potential approvals later in the year.

The #Ethereum ETF is likely not going to be approved in May.

However, the markets are undervaluing a potential approval in August, as Ethereum is still getting sold off.

I think the chances of an approval in August is positive, through which I expect Ethereum to outperform. pic.twitter.com/9LzLFyz05N

— Michaël van de Poppe (@CryptoMichNL) May 3, 2024

SEC May Tighten Rules on Ethereum ETF

The SEC’s stance on cryptocurrencies, particularly Ethereum, is anticipated to toughen, according to Michael Saylor. He predicts that the SEC might classify Ethereum as a security by this summer. Such a move could complicate matters for current and future Ethereum Spot ETF applications. If Ethereum is deemed a security, the approval process for these ETFs could face significant legal challenges.

This classification would not only impact Ethereum but could also affect other major cryptocurrencies like BNB, Solana (SOL), XRP, and Cardano (ADA). The broader implications for the crypto market could be substantial, possibly leading to more stringent regulations across the board. Industry giants like BlackRock, who are also in the race for an ETF, might see their applications stalled or rejected.

Hong Kong ETFs Attract $300M Week

Contrasting the uncertain climate in the U.S., Hong Kong‘s crypto market is witnessing significant growth. Following a slow start with the launch of Bitcoin and Ethereum ETFs, Hong Kong has seen nearly $300 million in weekly inflows. This marks a significant achievement and highlights the region’s emerging influence in the global crypto ETF market.

Meanwhile, the U.S. spot Bitcoin ETFs have experienced notable outflows. In the past week alone, these ETFs saw a reduction of $860 million. This stark difference between the two markets could indicate a shifting landscape in global crypto investments.

Read Also: Jim Cramer Predicts AI Will “Drive Refresh For Apple

The post Ethereum ETFs: May Rejection Looms, Analysts Eye August Approval appeared first on CoinGape.

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