Doubts about the approval of ETFs on Ether in May.

Industry professionals are expressing growing skepticism about the approval of Ether ETFs by the U.S. Securities and Exchange Commission (SEC) in May. Recent meetings between issuers and the SEC reportedly omitted substantive discussions, leading to expectations of possible rejections for Ether ETF applications. Todd Rosenbluth, head of ETF analysis at VettaFi, suggested a potential delay in approval, citing an unclear regulatory landscape. Hong Fang, president of exchange OKX, highlighted the expected downward pressure on Ether's price due to doubts regarding ETF approvals.

Several issuers, including VanEck and ARK Investment Management, have filed applications with the SEC for ETFs that track the Ether spot price. VanEck and ARK's applications will expire on May 23 and 24, respectively.

Consensys Software Inc. disclosed in an unredacted complaint that the SEC launched a formal investigation into Ethereum more than a year ago. The company said the SEC's actions signaled a reversal of its previous position of not considering Ethereum as a security in early 2023.

The classification of Ethereum as securities remains controversial according to industry analysts. While former SEC officials have made several comments, current SEC Chairman Gary Gensler refrains from definitive statements. However, the chairman of the Commodity Futures Trading Commission, Rostin Behnam, considers Ether a commodity.

The SEC's approval of Ether futures ETFs last year raises questions about its classification of Ethereum as a security, prompting industry observers to question regulatory inconsistencies.