Odds of a spot ether (ETH) exchange-traded fund (ETF) being approved and launched in the U.S. in May have plummeted to a mere 35% from 70%, two influential analysts at Bloomberg said Monday.

ETH ETF Optimism Waning

The likelihood of the U.S. Securities and Exchange Commission (SEC) greenlighting an ether market (ETH) spot exchange-traded fund (ETF) has substantially decreased.

Despite the high optimism in the cryptosphere earlier this year that an approval could be imminent, recent developments suggest increasing scepticism about the SEC’s approval of ETH ETFs, especially ahead of the much-awaited regulatory decision date of May.

Fox Business journalist Eleanor Terrett observed that there has been a notable change in the mood regarding the SEC’s outlook on ether ETFs. Insiders reveal that SEC staff have not engaged potential issuers to iron out the details necessary for approval and listing despite the drop-dead deadline drawing closer.

Bloomberg Trims Ether ETF Odds To 35%

That said, Bloomberg analysts have dropped their chances of a spot ETH ETF approval in May to 35%. Responding to Eleanor’s post on X, Eric Balchunas said they believe the SEC should approve Ethereum ETFs but all the “signs/sources” that were making them bullish on BTC ETFs are not present this time.

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“This Ethereum ETF cycle feels like the opposite of Bitcoin ETF approval odds at the moment. The more we see/hear (and don’t see/hear) the less optimistic I become,” his colleague James Seyffart commented on X. “We’re ~73 days stated from the deadline and there really seems to be little to no movement.”

Several prominent financial institutions, among them BlackRock, Fidelity, Grayscale, and Franklin Templeton, have in recent months filed applications for a spot ETH ETF to make investing in Ethereum more accessible for traditional investors. Interestingly, last month, Bloomberg analysts assigned a 70% probability of approval by May. Interest in Ethereum ETFs has been intensifying following the roaring success of spot Bitcoin ETFs, with the newly launched products collectively holding assets valued at roughly $28 billion.

As ZyCrypto reported earlier, crypto exchange Coinbase had a sit-down with the SEC to discuss Grayscale’s proposal to convert its Ethereum Trust into a spot ETF. Notably, the regulator has pushed back its decision on several spot ETH ETF applications, signalling a cautious approach.

Nonetheless, Ethereum investors are still hopeful and looking for signs of likely approval in the SEC’s future actions and comments. Moreover, Balchunas thinks “35% isn’t 0%; it’s still possible, and long-term, we think it will happen.”