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Some experts remain optimistic about future approvals and the positive effect they could have on Ethereum's valuation despite this anticipated setback.

The Securities and Exchange Commission (SEC) is expected to deny several applications for Ethereum spot exchange-traded funds (ETFs) this May, according to anApril 24 report from Reuters.

Recent interactions hint at a disapproving stance from the agency, which remains skeptical of the cryptocurrency sector under Chair Gary Genslers leadership.

Several applicants expect the SEC to reject ether ETFs due to issues such as the nature and depth of statistics regarding ether's underlying market.

U.S. issuers, including notable firms VanEck and ARK Investment Management, anticipate rejections after unproductive discussions with the SEC. The decision deadline for VanEck and ARK's applications is set for May 23 and May 24, respectively.

Issuers cite the approval of Bitcoin spot ETFs as example, arguing the SEC should have a consistent approach. However, the SEC's rigorous examination of these earlier products contrasts sharply with its current stance on Ethereum ETFs, which may reflect its ongoing concerns about market manipulation and the maturity of underlying market mechanisms.

Standard Chartered also recently noted that investors cannot expect the Securities and Exchange Commission to approve Ethereum's ether (ETH) ETFs in May, as previously predicted.

Despite potential setbacks, some industry experts like Jupiter Zheng from HashKey Capital remain optimistic. Even if Ethereum ETFs are rejected, it may merely be a bump in the road rather than a roadblock, suggested Zheng in an interview withCoinTelegraph.

Likewise, Zheng expressed optimism about the potential bullish effects of an approved ETF, especially one that includes staking, which could trigger a wave of short liquidations and further drive Ethereum's price higher. Crypto investors like Jelle highlight potential bullish trends for Ethereum, drawing parallels to previous market cycles around Bitcoin halving events.

Crypto analysts have adjusted their forecasts, with Bloombergs Eric Balchunas suggesting only a 35% chance of approval. This skepticism mirrors the broader sentiment among financial analysts, pointing to the SECs consistent hesitancy to fully embrace the crypto sector.

Even with potential rejections, the pursuit of Ethereum spot ETFs is likely to persist. Issuers are preparing additional disclosures in hopes of keeping discussions with the SEC alive.

The anticipated denial is already affecting Ethereum's market performance, which lags behind Bitcoins yearly gains. Ethereum $ETH is down by 5.6% in the last 24 hours andtrading at $3086,as of writing.

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Ethereum Spot ETFs Is Likely Face SEC Denial in May: Reports - BSC NEWS