Over the past 24 hours, Ethereum (ETH) has experienced a 5% price drop amid speculation that the US Securities and Exchange Commission (SEC) will reject upcoming Ethereum ETFs.
US Bitcoin ETF issuers anticipate the SEC's denial of their applications for spot ETH ETFs.
Prominent firms like VanEck and ARK Investment Management have submitted filings for ETFs tracking Ethereum's price.
VanEck's and ARK's applications are subject to SEC decisions by May 23 and May 24, respectively.
Issuers argue that the SEC's approval of spot Bitcoin ETFs and Ethereum futures-based ETFs in October set a precedent for spot ETH products.
Sources indicate that SEC discussions have been one-sided, with staff not engaging in substantive details.
If rejected, it would be a setback for the cryptocurrency industry, leaving the regulatory landscape uncertain.
Some issuers intend to submit additional paperwork, while others, like VanEck, anticipate rejection.
Rejection could lead to potential court battles, as issuers may challenge the SEC's decision.
The anticipated rejection has influenced Ethereum's price, which is trading at $3,100 with a 12% decline over the past fourteen days.