Tron founder Justin Sun has expressed doubts about the approval of a spot Ethereum exchange-traded fund (ETF) in the upcoming month. This sentiment is shared by various analysts who anticipate that the Securities and Exchange Commission (SEC) will reject applications for spot Ether ETFs from multiple issuers.

In a recent post, Sun emphasized the need for the crypto industry to educate regulators on crypto matters for long-term success. He highlighted the importance of establishing a dialogue with regulators to increase understanding of the crypto space.

Financial firms in the U.S. have had discouraging meetings with the SEC in recent weeks, leading to the belief that spot Ethereum ETF approval in May is unlikely. Companies like Blackrock, VanEck, ARK Investment Management, and others have filed with the SEC to list spot Ethereum ETFs, with decisions on VanEck’s and ARK’s applications expected by May 23 and May 24, respectively.

While spot Bitcoin ETFs were approved in January, the outlook for spot Ethereum ETFs seems less optimistic. Bloomberg ETF analyst Eric Balchunas estimated the chances of a spot Ether ETF approval in May at around 35%, citing a less proactive approach from the SEC compared to Bitcoin ETF applications.

Justin Sun has had previous encounters with the SEC, as he was recently sued for fraud, market manipulation, and offering unregistered securities. The lawsuit alleges that Sun and his crypto businesses violated federal securities laws by selling unregistered securities like Tronix (TRX) and BitTorrent (BTT).

According to court filings, Sun has substantial assets in various wallets, with the $280 million USDD stablecoin being his largest holding. Despite the legal challenges, Sun remains an influential figure in the crypto community, engaging with followers on social media platforms like Twitter.

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