Tron CEO Justin Sun Casts Doubt on Ethereum ETF Approval in May
Tanzeel Akhtar
Last updated:
April 28, 2024 23:30 EDT
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1 min read
Tron founder Justin Sun has expressed skepticism about the prospects of an Ethereum exchange-traded fund (ETF) being approved in May. According to Sun, the cryptocurrency requires “long-term education with regulators” before such a product can be greenlit.
This sentiment echoes the views of numerous analysts, who have already predicted that the Securities and Exchange Commission (SEC) is likely to deny applications to launch an Ethereum ETF. In a recent X post, Sun weighed in on the subject, sharing his perspective on the matter.
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, pushing the deadline to June 11, 2024. This news, revealed in a public filing, has left the future of this financial product uncertain for the time being.
Several other issuers, including BlackRock, 21Shares with Ark, Fidelity, Invesco with Galaxy, Grayscale, VanEck, and Hashdex, have also filed applications for Ethereum ETFs.
Analysts Express Skepticism
Analysts from Bloomberg Intelligence have noted that many have speculated the SEC will reach a final decision on Ether ETF applications in May, during the deadlines for several asset managers’ proposals. However, the recent SEC delays have tempered these expectations.
Bloomberg Intelligence analyst James Seyffart has expressed skepticism, 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 of Ethereum ETFs from Bitwise Ethereum Trust, Fidelity Ethereum Fund, and Grayscale Ethereum.
Justin Sun and the SEC
Justin Sun is no stranger to dealing with the SEC. Most recently, the Tron founder is being sued by the SEC on allegations of fraud, market manipulation, and the offering of unregistered securities in the form of Tronix (TRX) and BitTorrent (BTT).
According to updated court filings, the SEC claims that Sun “travelled extensively” to the U.S. throughout “his work on behalf of the Tron Foundation, the BitTorrent Foundation, and/or Rainberry.”
Sun’s crypto holdings are substantial, with over $1 billion in assets across various wallets linked to him, including a $280 million USDD algorithmic stablecoin, the largest holding according to Arkham’s data.
In April, the crypto billionaire and controversial entrepreneur had the Academy Award-winning music composer and producer Hans Zimmer compose the TRON Anthem.
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