SEC Postpones Decision on Ethereum ETFs
The United States Securities and Exchange Commission (SEC) has once again delayed its decision regarding the approval or denial of spot Ethereum exchange-traded funds (ETFs) submitted by BlackRock and Fidelity. This comes after the agency recently approved several Bitcoin ETFs that have gained significant traction.
On March 4, the SEC announced that it would postpone the decision for BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum Fund. BlackRock initially submitted its application in November, and the SEC postponed its decision two months later, citing the need for more time to review. Although a new decision deadline was set for March 10, it has now been discarded according to the agency filing. Additionally, the SEC has also delayed decisions on other spot Ethereum ETF applications from Fidelity, Invesco, and Galaxy Digital.
Bloomberg ETF analyst James Seyffart has forecasted that these delays could continue until May 23, which is the ultimate deadline for applications submitted by VanEck and Cathie Wood’s Ark Invest. These applications were initially submitted on September 6, 2023, and the SEC first delayed its decisions on them two weeks after submission.
Spot Ethereum ETFs Gain Attention Amid Bitcoin Surge
The recent postponement by the SEC was not unexpected, as market observers and ETF analysts anticipated that the agency would wait until the first conclusive deadline in May to decide on approval or denial.
The interest in spot Ethereum ETFs has grown as Bitcoin approaches a new all-time high. The success of spot Bitcoin ETFs, which attracted $1.84 billion in inflows within a week, has fueled enthusiasm around BTC. There is a similar expectation for Ethereum, which recently reached its highest price in over a year, leading to high demand for an Ethereum ETF.
However, not all analysts believe that a spot Ethereum ETF will perform as well as its Bitcoin counterparts. Bloomberg ETF analyst Eric Balchunas stated that he and Seyffart would soon publish formal odds on the approval of an Ethereum ETF but referred to the yet-unapproved ETH funds as “small potatoes” compared to Bitcoin-based funds.
Ethereum’s price has been reflecting the market’s optimism regarding potential approval, with a 62% increase over the past month. This upward trend has continued even after the SEC’s announcement of the delay. According to the latest CoinGecko data, ETH is currently trading at $3,691.84, representing a 4.9% increase in the last 24 hours.
Hot Take: SEC Delays Decision on Ethereum ETFs
The SEC has once again postponed its decision on spot Ethereum exchange-traded funds (ETFs) submitted by BlackRock and Fidelity. This delay comes after the agency recently approved several Bitcoin ETFs that have gained significant popularity.
The interest in spot Ethereum ETFs has grown as Bitcoin continues to surge towards a new all-time high. However, not all analysts are convinced that an Ethereum ETF will perform as well as its Bitcoin counterparts.
Ethereum’s price has been reflecting the market’s optimism regarding potential approval, with a significant increase over the past month. Despite the SEC’s decision to delay, Ethereum’s price continues to rise.
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