SEC POSTPONES DECISION ON BLACKROCK AND FIDELITY’S ETHEREUM ETFS 

The U.S. Securities and Exchange Commission (SEC) has deferred its decision on the spot Ethereum exchange-traded funds (ETFs) proposed by BlackRock and Fidelity, with May highlighted as a critical month for a potential verdict.

This marks another instance where the SEC has delayed its judgment on the spot Ethereum ETFs from these financial giants, following the approval of several Bitcoin ETFs that have witnessed significant success.

SEC Holds Off on Ethereum ETF Decision

The SEC announced its decision to extend the review period for the iShares Ethereum Trust by BlackRock and the Ethereum Fund by Fidelity on March 4.

Originally filed in November, BlackRock’s application saw its first delay by the SEC two months later, with the regulator citing the need for further examination. Although March 10 was set as a new deadline, this has now been postponed, according to recent filings by the agency.

Additionally, the SEC has pushed back its decision on other spot Ethereum ETF applications, including those from Fidelity, Invesco, and Galaxy Digital.

James Seyffart, a Bloomberg ETF analyst, has suggested that the SEC could extend these delays to May 23, the final decision date for applications by VanEck and Ark Invest, led by Cathie Wood.

These applications, including one from Fidelity dating back to 2021, were initially submitted on September 6, 2023, and saw their first delays by the SEC two weeks later.

Spot Ethereum ETFs in the Limelight as Bitcoin Hits New Heights

As Bitcoin edges closer to setting a new all-time high, the anticipation around spot Ethereum ETFs intensifies, bolstered by the recent success of spot Bitcoin ETFs, which saw $1.84 billion in inflows in a single week. The surge in Ethereum’s price, reaching a yearly high, has fueled investor interest in the potential of a similar trend for Ethereum ETFs.

Nonetheless, some analysts remain skeptical about a spot Ethereum ETF performing as well as Bitcoin ETFs. Bloomberg’s ETF analyst, Eric Balchunas, hinted at publishing formal predictions on the approval chances of an Ethereum ETF but downplayed the significance of the pending ETH funds compared to those based on Bitcoin.

Despite the SEC’s latest delay, Ethereum’s value has continued to climb, reflecting the market’s optimism about possible approval. With a 62% increase over the previous month, Ethereum’s price persisted in its upward trajectory even after the SEC’s delay announcement. According to the most recent CoinGecko data, ETH is trading at $3,691.84, showing a 4.9% increase in the past 24 hours.

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