The crypto world anxiously awaits the U.S. Securities and Exchange Commission's (SEC) pivotal ruling on the approval of a spot Ethereum ETF, scheduled for May 31st. As the deadline draws near, several factors have come into play, casting uncertainty over the decision's outcome.

At the center of the SEC's deliberations is a crucial question: whether Ethereum should be classified as a security or a commodity. This determination could significantly impact the fate of the spot ETF applications filed by various firms, including VanEck, ARK 21Shares, Hashdex, Invesco Galaxy, BlackRock, and Fidelity.

In a recent development, finance lawyer Scott Johnsson highlighted a concerning detail from a March filing by BlackRock regarding its spot Ether ETF application. The filing called for public feedback on whether the investment vehicle could be listed as a commodity, suggesting that the SEC might be exploring the possibility of labeling Ether (ETH) as a security.

"The obvious purpose is to potentially deny on the basis that these spot filings are improperly filed as commodity-based trust shares and do not qualify if they are holding a security," Johnsson stated in an X post.

Mixed Expectations and Market Reactions

Bloomberg's senior ETF analyst, Eric Balchunas, has expressed skepticism regarding the likelihood of approval, reflecting the general sentiment that the regulator might maintain a cautious stance toward cryptocurrency-related products.