Galaxy Digital: Spot Ether ETF Approval in May Highly Unlikely

Approval of a spot ethereum exchange-traded fund (ETF) in May now looks "highly unlikely," according to Alex Thorn, head of research at Galaxy Digital. The Securities and Exchange Commission (SEC) has issued subpoenas to crypto companies with ties to the EtherFoundation, and the SEC's lack of active involvement with ETF applicants casts a cloud of doubt over the likelihood of a May approval. According to Fortune, the SEC is "actively pursuing legal activity" to classify ETH as a security, and Thorn suggests that the SEC may be considering whether the 2014 Initial Coin Offering (ICO) for Ether was an unregistered offering of securities, rather than just classifying the current secondary trading of ETH as a securities transaction. securities transactions.