SEC Postpones Decision on Spot Ether ETF Proposals
The Securities and Exchange Commission (SEC) has once again delayed its decision on spot Ether exchange-traded fund (ETF) proposals, leaving market participants in anticipation. The SEC announced on March 4 that it would postpone its verdict on applications from financial giants BlackRock and Fidelity regarding their spot Ether ETFs.
Repeat of Delay Tactics
This delay follows a pattern of previous postponements by the SEC, indicating its strategy to prolong the decision-making process. BlackRock first submitted its application for the iShares Ethereum Trust to the SEC in November of the previous year. The regulatory body had previously postponed its decision on BlackRock’s and Fidelity’s Ether ETF proposals in January, shortly after approving several spot Bitcoin ETFs.
Analyst Notes Final Deadline
Market observers and ETF analysts had anticipated the SEC’s tactic of delaying a final ruling until a critical deadline approaches. Bloomberg ETF analyst James Seyffart pointed out that May 23 is an important date to watch, as it represents the 240-day window within which the SEC must decide on proposals from other ETF contenders like VanEck and Ark 21Shares.
Seyffart had previously estimated a 60% likelihood of approval for spot Ether ETFs by May. He emphasized the significance of the May deadline and suggested that the SEC may align its decision-making process with this date.
Amendments to ETF Proposals
In response to the ongoing delays, other contenders seeking approval for spot ETH ETFs have made changes to their proposals, including amendments related to staking. Ark 21Shares, for example, adjusted its S-1 filing for the proposed fund last month by incorporating staking-related language within brackets.
Furthermore, Franklin Templeton entered the realm of Ether ETF hopefuls in February, and its filing also included staking-related language, though without the use of brackets as seen in Ark 21Shares’ filing.
Market Reaction
Despite the SEC’s decision to delay once again, the price of Ether has continued to rise, driven by optimistic market sentiment regarding potential ETF approval. Over the past month, Ether has seen a significant increase of 56.7%, unaffected by the recent delay announcement. Currently, Ether is trading at $3,754, representing a 13% increase for the week.
While there is promise for the approval of a spot Ether ETF, some industry participants remain cautious. Comparisons to the success of spot Bitcoin ETFs, such as BlackRock’s iShares Bitcoin ETF, which has amassed $10 billion in assets under management, suggest that the impact of spot Ether ETFs may not be as significant.
Hot Take: Spot Ether ETF Decision Hanging in the Balance 🤔
The Securities and Exchange Commission (SEC) has yet to make a decision on spot Ether exchange-traded fund (ETF) proposals, leaving the market in suspense. BlackRock and Fidelity are eagerly awaiting the verdict on their spot Ether ETFs, while other contenders, like VanEck and Ark 21Shares, are paying close attention to the May 23 deadline for a decision.
The ongoing delays have not deterred the optimism surrounding the potential approval of spot Ether ETFs. Despite the pushback in decision-making, the price of Ether has continued to soar, reaching $3,754 and capturing the attention of market participants.
The SEC’s tactic of prolonging the decision-making process has become familiar, but industry experts still believe that there is a possibility of approval by May. However, the impact of spot Ether ETFs may not be as monumental as that of spot Bitcoin ETFs, which have already gained significant traction.
As the waiting game continues, market participants are eager to see how the SEC’s decision unfolds and how it will ultimately affect the cryptocurrency market.
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