Tron’s CEO, Justin Sun, believes that the approval of an Ethereum exchange-traded fund (ETF) in May is unlikely, as the cryptocurrency still needs more time to educate regulators. Many analysts have already predicted that the Securities and Exchange Commission (SEC) will reject applications for an Ethereum ETF. In a recent post, Sun expressed his opinion on the matter.
The SEC recently announced a delay in its decision regarding Franklin Templeton’s proposed spot Ethereum ETF, pushing the deadline to June 11, 2024. This uncertainty leaves the future of this financial product in question. Several issuers, including BlackRock, 21Shares with Ark, Fidelity, Invesco, Galaxy, Grayscale, VanEck, Hashdex, and Franklin Templeton, have filed applications for Ethereum ETFs.
Bloomberg Intelligence analysts have expressed skepticism about the SEC’s decision, as recent delays have tempered expectations. Analyst James Seyffart believes that the current round of Ether ETF applications may ultimately be denied. In April, the SEC opened a period of public comment on the potential approval of Bitwise Ethereum Trust, Fidelity Ethereum Fund, and Grayscale Ethereum.
Justin Sun has had previous encounters with the SEC. He is currently facing a lawsuit from the SEC, accusing him of fraud, market manipulation, and offering unregistered securities through Tronix (TRX) and BitTorrent (BTT). The SEC claims that Sun extensively traveled to the U.S. while working for the Tron Foundation, the BitTorrent Foundation, and/or Rainberry. Sun has over $1 billion in assets, with $280 million in USDD algorithmic stablecoin being his largest holding, according to Arkham’s data. In April, Sun commissioned Academy Award-winning composer Hans Zimmer to create the TRON Anthem.
