The United States Securities and Exchange Commission (SEC) has once again deferred its decision regarding the approval or rejection of BlackRock and Fidelity’s proposed spot Ethereum exchange-traded funds (ETFs).
In separate filings on March 4, the SEC announced the delay for applications from BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum Fund. As reported earlier by TheCoinRise, the spot ETH ETF application from BlackRock was delayed by the regulator in late January as well. The agency said that it needed more time to consider the applications.
SEC Not Willing to Greenlight Spot ETH ETF?
This delay follows the agency’s initial postponement in January, shortly after approving several spot Bitcoin ETFs to go live. The regulatory body has the authority to delay its decision up to three times before reaching a final verdict. Notably, industry observers and ETF analysts have long speculated that the SEC would make a decision only when the first final deadline arrives in May.
VanEck’s Deadline is Crucial
According to Bloomberg ETF analyst James Seyffart, May 23, the final deadline for VanEck’s spot ETH ETF application, is crucial for Ethereum ETFs. The delay by the SEC was, therefore, anticipated, aligning with this speculated timeline.
Despite the postponement, the price of Ether (ETH) remains resilient, buoyed by broader market enthusiasm and potential approval prospects. Over the last month, ETH has recorded gains of 56.7%, reaching $3,754 at the time of publication, marking a 13% increase for the week, according to CoinGecko data.
Spot BTC ETFs Remain Dominant
However, skepticism exists regarding the potential impact of a spot Ethereum ETF compared to Bitcoin ETFs. BlackRock’s iShares Bitcoin ETF has already amassed an impressive $10 billion in assets under management. Bloomberg ETF analyst Eric Blachunas noted that the yet-to-be-approved Ethereum funds are perceived as “small potatoes” in comparison to their Bitcoin counterparts.
While anticipation for regulatory clarity continues, the delay in deciding on BlackRock and Fidelity’s Ethereum ETFs has not deterred market optimism, with ETH maintaining its positive trajectory amidst the evolving landscape of cryptocurrency investment. As the SEC navigates the complexities of approving cryptocurrency-based financial products, the market eagerly awaits a definitive decision that could shape the future of Ethereum ETFs and influence broader market dynamics.
SEC Won’t Need a Lawsuit to Approve Spot ETH ETF
As noted by SEC Commissioner Hester “Crypto Mom” Peirce, asset management firms looking to provide spot Ether ETFs in the US will not need to sue the SEC, like in the case of a spot Bitcoin ETF.
“We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right,” Peirce noted.