# SEC to Decide on Ethereum ETFs in May Amid Growing Skepticism

*SEC&#039;s upcoming decision on Ethereum ETFs faces doubts as approval odds drop*

**Author:** Jakub Lazurek
**Published:** 2025-03-20 11:33:32
**Source:** [View on Coinpaprika](/news/sec-to-decide-on-ethereum-etfs-in-may-amid-growing-skepticism/)

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**Following delays and skepticism about their approval, the **[**SEC**](https://coinpaprika.com/news/sec-issues-strict-warning/)** will decide on Ethereum ETFs in May**. Despite these challenges, Grayscale Investments and BlackRock have updated their applications for spot Ethereum ETFs. **Grayscale recently took a significant step** by filing an S-3 registration with the SEC on April 23. It aims to transform its current Grayscale Ethereum Trust into a spot ETF.

This follows an earlier filing by NYSE Arca. Grayscale also plans for a smaller version of an Ethereum ETF, similar to its mini Bitcoin ETF, though the SEC has yet to approve these smaller ETFs. **BlackRock has also been active**, modifying its filing to include a change from in-kind to cash-based handling of ETF shares, which aligns it with other Ethereum ETF proposals and some approved [Bitcoin ETFs](https://coinpaprika.com/news/bitcoin-etfs-hit-historic-2-4-billion-surge-amid-rising-crypto-value/). **Expectations for approval are low**, with Bloomberg analyst Eric Balchunas slashing the likelihood of success from 70% to 25%. 

Betting market Polymarket reflects even greater pessimism, showing only an 11% chance of approval by the end of May. **The SEC has postponed decisions on several **[**Ethereum ETF**](https://coinpaprika.com/news/bitwise-proposes-ethereum-etf-amid-regulatory-hurdles/)** applications** and plans to address them in May. The outlook is not promising, and market watchers suggest tempering expectations for these potentially groundbreaking investment tools.

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**Tags:** Ethereum ETF, Bitcoin ETF

