According to Michael Saylor, Ethereum could be considered a security by the SEC. An analyst believes that instead of rejecting applications outright, the SEC will likely postpone their approval. The impending decision by the U.S Securities and Exchange Commission on Ethereum ETFs has made professionals in the industry increasingly doubtful.

Crypto analyst Michaël van de Poppe has expressed doubts about the approval of Ethereum Spot ETFs in May. Michael Saylor, CEO of MicroStrategy, has also shared his pessimistic views on the future of Ethereum ETFs with others in the industry.

Anticipated Delay in Application

Three out of seven applicants, including Hashdex Nasdaq, Ark 21 Shares, and VanEck, are leading the charge in this struggle. With the SEC's ongoing investigation into underlying securities concerns, these applicants face a challenging road ahead. Van de Poppe suggests that rather than outright rejection, the SEC may delay their approval. The likelihood now points towards potential approvals later in the year, contingent on this decision.

Michael Saylor predicts that the SEC may take a tougher stance on cryptocurrencies, particularly Ethereum. He forecasts that Ethereum may be classified as a security by the SEC by the summer of this year. Existing and prospective applications for Ethereum Spot ETFs may struggle with this development. Approval processes for these ETFs might face significant legal obstacles if Ethereum is deemed a security.

The potential categorization of major cryptocurrencies like Ethereum, BNB, XRP, Solana (SOL), and Cardano (ADA) could have far-reaching impacts. This could lead to more extensive regulation in the cryptocurrency sector. Companies like BlackRock, also seeking an ETF, may encounter delays or rejections in the approval process due to these developments.