SEC Delays Decision on BlackRock and Fidelity’s Ethereum ETFs Again
Summary:
The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on the approval of Ether (ETH) exchange-traded funds (ETFs) proposed by BlackRock and Fidelity. This delay marks the second time the SEC has deferred its decision since January. Meanwhile, the price of Ether continues to rise, unaffected by the repeated delays. The final deadline for decision on these applications is set for May 23.
The U.S. Securities and Exchange Commission (SEC) has postponed its verdict on whether to grant or deny approval for Ether (ETH) exchange-traded funds (ETFs) proposed by BlackRock and Fidelity. On March 4, in individual filings, the SEC revealed it will delay decision-making for BlackRock's iShares Ethereum Trust and Fidelity's Ethereum Fund applications. The SEC previously deferred the Ether ETF decisions for both BlackRock and Fidelity back in January, promptly following the approval of a succession of spot Bitcoin (BTC) ETFs for listing. The SEC holds the right to defer its decision thrice before announcing a definite outcome. Market observers and ETF experts have long assumed that the SEC will only reach a decision on approving or rejecting the proposed ETFs when the initial final deadline in May arrives. According to a February 7 post by James Seyffart, Bloomberg ETF analyst, the main focal point for Ethereum ETF applications is May 23 — the ultimate deadline for VanEck's spot ETH ETF application. Ether's price keeps rising, stimulated by the broader market excitement over a possible approval, having recorded a growth of 56.7% over the previous month unaffected by the SEC's current decision to defer. As per CoinGecko data, Ether is currently valued at $3,754, showing a 13% growth over the week at the time of the report. Despite this, not everyone is certain about the significance of a spot Ether ETF compared to the spot Bitcoin ETFs, considering the astonishing $10 billion assets under management by BlackRock's iShares Bitcoin ETF alone. Eric Balchunas, Bloomberg ETF analyst, indicated that he and Seyffart will soon provide formal odds concerning the ETH ETF approval. However, he likened the unapproved funds to being “small potatoes” in comparison with the Bitcoin funds.
Published At
3/5/2024 2:53:10 AM
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