GSR, a crypto market maker, has revised its estimate for the likelihood of a spot Ether ETF approval in May, reducing it to 20%.
In a note released on Wednesday, GSR analyst Brian Rudick stated:
“We now believe there is a 20% chance the SEC approves a spot Ethereum ETF in May.”
This represents a significant decrease from GSR’s previous estimate in January, which placed the likelihood at 75%. GSR Research Analyst Matt Kunke had previously cited Grayscale’s Court of Appeals victory and the approval of Ethereum Futures ETFs in October as reasons for the optimistic outlook.
Rudick explained that similarities between the conditions preceding the potential approval of a spot Ether ETF and those prior to spot Bitcoin ETF approvals had influenced the earlier optimistic stance.
However, he noted a shift in perspective, attributing it to minimal engagement from the SEC and potential political pressure against approving additional digital asset ETFs. Additionally, the SEC’s reported investigation into whether Ether qualifies as a security was cited as a factor diminishing the likelihood of approval.
