SEC Extends Ethereum ETF Decision Timeline Amid Growing Demand and Market Anticipation
The SEC persists in postponing its verdict on the spot Ethereum ETF proposals by BlackRock and Fidelity, creating anticipation among analysts who point to May as a pivotal month in this regulatory saga.
The fervor surrounding spot Bitcoin ETFs has sparked a surge in demand for their Ethereum-based counterparts. BlackRock’s proposal for the iShares Ethereum Trust faces another delay by the Securities and Exchange Commission (SEC), marking the second postponement of decision-making. The initial application, submitted in November, encountered its first delay two months later, prompting the SEC to extend the deadline to March 10.
However, this deadline has been discarded, as revealed in a recent filing. Notably, the SEC has deferred decisions on multiple spot Ethereum ETF applications from Fidelity, Invesco, and Galaxy Digital. Bloomberg ETF analyst James Seyffart anticipates ongoing delays until the critical date of May 23, coinciding with the final deadlines for VanEck and Ark Invest’s applications.
SEC just delayed @InvescoUS & @galaxyhq’s #Ethereum ETF. 100% expected, and more delays will continue to happen in coming months.
James Seyffart on Platform X
As the Bitcoin frenzy inches towards a new all-time high, just 6% away from the anticipated milestone, interest in spot Ethereum ETFs intensifies.
The success of spot Bitcoin ETFs, amassing $1.84 billion in inflows within a week, has fueled expectations for a similar trend with Ethereum, now trading at its highest price in over a year. The impending Dencun upgrade for the Ethereum network adds to the bullish sentiment.
Despite delays, Ethereum futures-based ETFs have been available since October, offering an alternative avenue for investors.
The SEC’s latest delay on BlackRock and Fidelity’s Ethereum ETF applications aligns with market expectations, with May identified as the pivotal month. Ether’s price continues to benefit from broader market enthusiasm, posting a substantial 56.7% gain in the last month.
The SEC’s decision has not impacted Ether’s value, currently trading at $3,754, a 13% increase for the week. While some remain skeptical about the significance of a spot Ether ETF compared to Bitcoin counterparts, the market awaits the unfolding developments in this evolving landscape.
Yeah @JSeyff and I will have formal odds out soon but tbh and no offense to the eth ppl but this is such small potatoes vs spot bitcoin ETFs. It’s like the opening act coming on after the headliner. Using GenX bands it’s like Sister Hazel trying to follow Nirvana.
Eric Balchunas on Platform X
