- SEC postpones decision on spot Ethereum ETFs from BlackRock and Fidelity.
- Delays expected to continue until May 23, impacting applications by VanEck and Ark Invest.
- Growing interest in Ethereum ETFs amid Bitcoin’s success, despite skepticism from analysts.
SEC’s Latest Decision on Ethereum ETFs
The United States Securities and Exchange Commission (SEC) has once again deferred its decision on spot Ethereum exchange-traded funds (ETFs) submitted by BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum Fund. This delay, announced on March 4, follows the recent approval of several Bitcoin ETFs by the SEC, which garnered significant market attention.
BlackRock’s initial application, submitted in November, faced a two-month postponement by the federal regulator, citing the necessity for additional review time. The new decision deadline, initially set for March 10, has been discarded, as revealed in the recent SEC filing. Additionally, the SEC has deferred decisions on various other spot Ethereum ETF applications, including those from Invesco and Galaxy Digital.
Bloomberg ETF analyst James Seyffart predicts that these delays may persist until May 23, the ultimate deadline for applications submitted by VanEck and Ark Invest. These applications, dating back to September 6, 2023, have faced successive delays by the SEC.
Ethereum ETFs Amid Bitcoin Surge
The postponement of Ethereum ETF decisions by the SEC was anticipated by market observers, particularly as the first conclusive deadline in May approaches. Spot Ethereum ETFs have gained increased attention, coinciding with Bitcoin’s surge to a new all-time high. The success of spot Bitcoin ETFs, accumulating $1.84 billion in inflows within a week, has fueled enthusiasm around the potential performance of Ethereum ETFs.
Despite the optimism, not all analysts are convinced that spot Ethereum ETFs will replicate the success of their Bitcoin counterparts. Bloomberg ETF analyst Eric Balchunas referred to yet-unapproved Ethereum funds as “small potatoes” compared to Bitcoin-based funds. Nevertheless, Ethereum’s price has mirrored the market’s positive sentiment, witnessing a 62% increase over the past month, even after the SEC’s announcement of the delay.