US SEC Delays Decision on BlackRock’s Spot ETH ETF
The U.S. Securities and Exchange Commission (SEC) has postponed its decision to approve the BlackRock spot Ethereum exchange-traded fund (ETF). This delay comes after BlackRock filed an application in November for an “iShares Ethereum Trust” that would be listed on NASDAQ if approved. While the SEC has already approved almost a dozen Bitcoin spot ETFs, including the BlackRock iShares Bitcoin Trust, the decision for the Ethereum ETF has been delayed.
ETH Spot ETF Applications Filed So Far
BlackRock is not the only asset manager looking to launch a spot Ethereum ETF. In February, investment firm Franklin Templeton joined a long list of asset managers that have filed applications with the SEC. Some of these asset managers include Fidelity, Grayscale, VanEck, Invesco, Galaxy, Cathy Wood’s Ark Invests, and 21Shares. The increasing number of applications highlights the growing interest in launching an Ethereum ETF.
Why the SEC Delays Decisions
The SEC’s cautious approach towards crypto ETFs is evident in its decision to delay approvals. The regulator takes into account all risks and regulatory considerations associated with these ETFs before making a decision. It took over ten years for the SEC to approve a Bitcoin spot ETF in 2024. The Winklevoss twins first filed for a Bitcoin ETF back in July 2013, but it was rejected multiple times before finally receiving approval.
Ethereum Gas Fees Surge
Ethereum has gained popularity as the second-largest cryptocurrency after Bitcoin. Recently, gas fees on the Ethereum network have skyrocketed due to increased interest in an experimental token standard called ERC-404. These gas fees reached levels not seen since March 2023, with average peak prices of 70 gwei (equivalent to $60 for a standard transaction) and even reaching as high as 377 gwei. Several factors contribute to the surge in gas fees, but the primary catalyst is the hype surrounding the ERC-404 token standard.
Hot Take: SEC Delays Approval, Ethereum Gas Fees Soar
The SEC’s decision to delay the approval of BlackRock’s spot Ethereum ETF reflects its cautious approach towards crypto ETFs. While Bitcoin spot ETFs have gained approval, Ethereum ETFs are still under scrutiny. This delay highlights the need for thorough assessment of risks and regulatory considerations before granting approval.
On another note, Ethereum gas fees have surged due to increased interest in ERC-404 tokens. This surge in gas fees underscores the growing demand and adoption of Ethereum and its associated token standards. As Ethereum continues to gain popularity, it is important for investors and users to monitor gas fees and adjust their strategies accordingly.
Overall, these developments in both the regulatory and technical aspects of Ethereum demonstrate the dynamic nature of the cryptocurrency market. Investors and users should stay informed and adapt to these changes to make informed decisions.
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