Despite the market expecting the first batch of Ethereum ETFs to be rejected, there’s still hope for approval next year, according to a fund manager.
Early Monday, the crypto market was fairly quiet. Bitcoin (BTC), the largest cryptocurrency by market value, was steady at $67,156, and Ethereum (ETH) was trading at $3,127. This comes after a week of positive movement driven by optimism over a potential U.S. interest rate cut and a stock market rally.
Things might heat up soon with upcoming decisions on the first Ethereum exchange-traded funds (ETFs). The Securities and Exchange Commission (SEC) is set to make decisions on VanEck’s Ethereum ETF on May 23 and the Ark/21 Shares ETF on May 24. Additionally, Nvidia’s earnings report is expected.
March Zheng, managing partner at Bizantine Capital, mentioned in an interview that while the market is almost certain about a rejection, there’s still room for optimism. He said, “We might find some positives in the delay, which could hint at a likely approval of Ethereum ETFs next year. The removal of staking elements by applicants reclassifies ETH as commodities, supported by the CFTC, paving a significant way forward.”
Currently, Polymarket estimates a 10% chance of an Ethereum ETF being approved by May 31, a 13% chance by June 30, and a 28% chance by the end of the year. Recently, Coinbase analyst David Han suggested that the market might be “underestimating the timing and likelihood of a potential approval.”
Zheng also noted that positive news about Ethereum ETFs could boost trading sentiment for BASE, a Layer-2 network. BASE’s native token has dropped nearly 25% in the past two weeks.
Traders will also be closely watching Nvidia’s earnings report, scheduled for Wednesday. Bitcoin often moves in sync with Nvidia, as do AI-themed tokens, which saw a surge in February after Nvidia’s strong earnings report. Although the direct link between Nvidia and Ethereum market movements isn’t as strong as during the mining boom, strong earnings from Nvidia could positively influence Bitcoin and AI tokens, lifting the entire market.
