The United States Securities and Exchange Commission’s lack of communication regarding Ether (ETH) exchange-traded funds (ETFs) has raised concerns among those anticipating Ether ETF approvals by May.

Bloomberg ETF analyst Eric Balchunas recently downgraded the likelihood of Ether ETF approval to just 35%. Balchunas highlighted the absence of any feedback or comments from the SEC to issuers, signaling a potential delay in the approval process.

With only 73 days left until the final deadline, the lack of engagement from the SEC has left issuers in limbo. Balchunas emphasized the need for feedback from the SEC, which would require issuers to address any comments and potentially refile their applications.

Speculation suggests that the SEC’s silence may be intentional, with Chair Gary Gensler’s views on Ether potentially influencing the decision-making process. Gensler’s perception of Ether as a security could hinder the approval of an ETF, especially in light of recent events surrounding Bitcoin ETFs and the SEC’s legal battles.

The process for Ether ETF approval feels different compared to previous instances, creating uncertainty among industry experts. The recent approval of ETH futures ETF products in contrast to the denial of spot ETFs has raised questions within the community.

Despite the challenges and uncertainties, experts like Matt Corva believe that an ETH ETF denial could have long-term benefits for the industry. Discussions between major players like Coinbase and Grayscale with SEC officials have provided some insight, but the approval of an Ether ETF remains uncertain.

While the road to an Ether ETF approval may be bumpy, industry experts remain optimistic that it is a matter of when, not if. As the industry evolves and regulatory challenges are addressed, the approval of an Ether ETF is seen as an inevitable milestone for the cryptocurrency market.

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