Tron’s Justin Sun Says Ethereum ETF Unlikely to Be Approved in May

CryptoNews.com

2024-04-28 19:30:48

Tanzeel Akhtar

Last updated:

April 28, 2024 23:30 EDT | 2 min read

Tron CEO and founder Justin Sun said it is unlikely an Ethereum exchange-traded fund (ETF) will be approved in May with the cryptocurrency in need of “long-term education with regulators.”

Numerous analysts have already said the Securities and Exchange Commission (SEC) is expected to deny their applications to launch an Ethereum ETF.

In an X post, the crypto mogul weighed in on the subject matter, adding:

My honest opinion (NFA) is that an Ethereum ETF won’t be approved in May. The crypto industry still needs to prepare for a long-term education with regulators, focusing on helping them understand crypto. But we’ve always been here, haven’t we?

— H.E. Justin Sun 孙宇晨 (@justinsuntron) April 28, 2024

Franklin Templeton’s Eth ETF Decision Delayed

Last week the SEC announced a delay in its decision regarding Franklin Templeton’s proposed spot Ethereum ETF, extending the deadline to June 11, 2024. This news comes from a filing made public, leaving the future of this financial product uncertain for the time being.

There are several issuers which have filed applications for Ethereum ETFs including BlackRock, 21Shares with Ark, Fidelity, and Invesco together with Galaxy, Grayscale, VanEck, Hashdex and Franklin Templeton.

Analysts Express Scepticism

Analysts from Bloomberg Intelligence have said, “Many analysts have speculated that the SEC will reach a final decision on whether to approve or deny a spot Ether ETF for listing and trading on U.S. exchanges in May, during deadlines for applications from several asset managers.”

However, the recent SEC delays have tempered expectations. Bloomberg Intelligence analyst James Seyffart has expressed scepticism, suggesting the current round of Ether ETF applications might ultimately be denied.

In April, the SEC initiated a period of public comment regarding their potential approval. The commission is seeking feedback on proposals from Bitwise Ethereum Trust, Fidelity Ethereum Fund, and Grayscale Ethereum.

Justin Sun and the SEC

When it comes to dealing with the SEC, Sun is no stranger. Most recently Sun is being sued by the SEC on allegations of fraud, market manipulation and airdropping unregistered securities. An SEC lawsuit alleges Sun and the aforementioned crypto entities broke federal law by offering and selling unregistered securities in the form of Tronix (TRX) and BitTorrent (BTT).

In updated court filings, the SEC claims that the Tron founder “travelled extensively” to the U.S. throughout “his work on behalf of the Tron Foundation, the BitTorrent Foundation, and/or Rainberry.”

Sun owns over $1 billion in assets across various wallets linked to him, with $280 million USDD algorithmic stablecoin being his largest holding, according to Arkham’s data,

In April, Sun, a crypto billionaire and controversial entrepreneur had the Academy Award-winning music composer and producer Hans Zimmer compose the TRON Anthem.

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