James Seyffart and Eric Balchunas are exchange-traded fund analysts. Recently, they outlined that they are reassessing the chances of the United States Securities and Exchange Commission (SEC) approving a spot Ether exchange-traded fund. This is after hearing chatter about the financial regulator.

On May 20, two exchange-traded fund analysts posted on X that the SEC might be ‘doing a 180.’ This concerns their projected denial of spot Ether exchange-traded funds this week. Previously, suggestions arose that the commission might deny spot Ether ETF applications. This information comes from the regulator’s filing, a public statement by SEC Chair Gary Gensler, and some investigation reports.

They both changed their prediction of the odds of the spot Ether ETF approval from 25% to 75%. Seyffart suggested that the investment vehicle was evening into an ‘increasingly political issue.’

“If this turns out to be true, I’m never going to hear the end of this from the (Ether) people in my replies,” stated Seyffart. “But it’s what we’re hearing from multiple sources. If we’re correct, we should see a bunch of filings over the coming days,” he added.

VanEck lashes out at SEC

VanEck CEO Jan Van Eck said in an interview on April 9 that he failed to believe that the commission would approve his company’s ETF application in May. On May 7, Asset Manager Mr. Grayscale withdrew an application for an Ether futures ETF. Furthermore, Michael Sonnenshein stepped down as the CEO on May 20.

The SEC must decide on VanEck’s spot Ether ETF by May 23. The commission has frequently delayed VanEck’s application. This application is the first among many spot Ether ETFs, including Hashdex, Invesco Galaxy, ARK 21Shares, Fidelity, and BlackRock. They all await a decision from the commission.

The SEC rule affects how the regulator banks deal with companies holding assets. Lawmakers in the House of Representatives and the Senate overturned it in the last two weeks. The public learned of the decision after the lawmakers voted to overturn the SEC rule. President Joe Biden wasn’t sure whether to follow through with his threat to veto the resolutions or sign them into law.

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