According to Sun, it is still too early for Ethereum-based exchange-traded funds to enter the market. He believes that if such investment products were to appear, the outcome would be unpredictable because regulators still have a limited understanding of how cryptocurrencies operate. It is this lack of understanding among regulators that Sun believes may cause a delay in the launch of Ethereum ETFs in the United States.
“I highly doubt the SEC will approve spot Ethereum ETFs in May.” Sun expressed on social media. “The crypto industry needs to be prepared for regulators to closely scrutinize the crypto space and we should assist them in gaining a better understanding of digital assets. We have always been ready for this, haven’t we?”
The SEC recently postponed its review of Franklin Templeton’s application until June 11, 2024. Additionally, the agency has initiated public discussions regarding its recent modifications to BlackRock’s application for the iShares Ethereum Trust. This indicates that the SEC is carefully considering whether Ether should be categorized as a security. The Commission’s stance will heavily influence the evaluation process of any future applications seeking to launch ETFs linked to Ether.
Previously, the SEC filed a lawsuit against the Tron Foundation, alleging that the cryptocurrency assets TRX and BitTorrent (BTT) are unregistered securities. Just two weeks ago, the regulator argued in court that Justin Sun’s frequent trips within the United States could be a valid reason to continue the legal battle.