Galaxy Digital: May approval of spot Ethereum ETF highly unlikely

Alex Thorn, head of research at Galaxy Digital, said approval of a spot ethereum exchange-traded fund (ETF) in May now looks “extremely unlikely.” The Securities and Exchange Commission (SEC) has issued subpoenas to crypto companies with ties to the Ethereum Foundation, and the SEC’s lack of active involvement with ETF applicants casts doubt on the likelihood of approval in May. Fortune reports that the SEC is “actively pursuing legal action” to classify ETH as a security. Thorn suggested that the SEC may be considering whether the 2014 Ethereum initial coin offering (ICO) was an unregistered securities offering, rather than just classifying current secondary trades in ETH as securities transactions.