Key Points
- The SEC has delayed its decision on spot Ethereum ETFs applications from BlackRock and Fidelity.
- Despite the delay, the price of Ethereum continues to rise.
The U.S. Securities and Exchange Commission (SEC) has decided to postpone its decision on approving or rejecting Ethereum exchange-traded funds (ETFs) submitted by BlackRock and Fidelity.
This decision was made according to filings on the 4th of March.
Previous Postponements and Market Reactions
In January, the SEC first deferred its decision on the Ethereum ETF applications from BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum Fund.
This happened shortly after the approval of several spot Bitcoin ETFs.
The SEC can delay its decision up to three times before reaching a final verdict.
Market observers and ETF analysts had anticipated the SEC’s delay, speculating that a decision would likely coincide with the final deadline in May.
Comparing Ethereum and Bitcoin ETFs
While BlackRock’s iShares Bitcoin ETF has already amassed an impressive $10 billion in assets under management, there are reservations about the impact of the yet-to-be-approved Ethereum funds.
These are described as “small potatoes” in comparison to their Bitcoin counterparts.
Despite this, formal odds on the likelihood of an ETH ETF approval are being planned.
The continued uncertainty surrounding the approval of ETH ETFs can contribute to unpredictability within the cryptocurrency market.
Investors and enthusiasts eagerly await regulatory decisions as they can significantly influence market dynamics.
The repeated delays by the SEC may lead to frustration and impatience amongst investors.
Moreover, the delay might be interpreted by some as a lack of regulatory clarity for Ethereum-related financial products.
Unlike Bitcoin, which recently saw a successful rollout of spot Bitcoin ETFs, the repeated postponements for Ethereum ETFs could create a perception that Ethereum’s regulatory framework is less defined or more challenging to navigate.
The comparative hesitation and cautiousness of the SEC in approving Ethereum ETFs, especially when contrasted with the swift approval of Bitcoin ETFs, could signal potential concerns or reservations specific to Ethereum.
Despite these factors, the price of ETH continued to soar.
At press time, ETH was trading at $3,469.49 and its price rose by 1.56% in the last 24 hours.
The volume at which ETH was trading had spiked as well and had increased from 12.15 billion to 22.9 billion during this period.
