The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision to approve or deny applications for spot ethereum exchange-traded funds (ETFs) filed by BlackRock and Fidelity.
The latest delay comes weeks after the agency gave the green light to several bitcoin ETFs that have since gained major momentum.
SEC delays decision on ethereum ETFs
On March 4, the SEC declared would postpone the decision for BlackRock's iShares ethereum Trust and Fidelity's ethereum Fund.
BlackRock's initial application was submitted in November, and the federal regulator postponed its decision two months later, citing the need for more time to review it. Although a new decision deadline of March 10 was set, this date has been scrapped, as revealed in the agency document.
Additionally, the SEC has postponed its decisions on several other ethereum spot ETF applications, including those from Fidelity, Invesco, and Galaxy Digital.
Bloomberg ETF analyst James Seyffart has predicted that these delays could continue until May 23, the final deadline for applications submitted by VanEck and Cathie Wood's Ark Invest.
These particular applications, one of which dates back to 2021 for Fidelity, were initially filed on September 6, 2023. The SEC first delayed its decisions on these applications two weeks after they were filed.
Spot ethereum ETFs draw attention amid bitcoin surge
The SEC's recent postponement was not unexpected, as market watchers and ETF analysts had long anticipated that the agency would decide on approval or denial only as the first conclusive deadline approached in May.
Growing interest in ethereum spot ETFs is becoming more pronounced as bitcoin approaches a new all-time high. The enthusiasm around btc is largely fueled by the success of bitcoin spot ETFs, which saw $1.84 billion in inflows in one week. Anticipation of a similar trend for ethereum, which recently hit its highest price in over a year, is generating huge demand.
However, not all analysts are convinced that an ethereum spot ETF mirrors the performance of its bitcoin counterparts. Bloomberg ETF analyst Eric Balchunas mentioned that he and Seyffart would soon publish formal odds on the approval of an ethereum ETF, but referred to the not-yet-approved eth funds as “small potatoes” compared to funds based in bitcoin.
ethereum price has reflected the broader market's optimism about a potential approval, rising 62% over the past month. This increase continued even after the SEC's announcement of the delay. As of latest CoinGecko ethereum” data-wpel-link=”external” target=”_blank”>dataeth is trading at $3,691.84, up 4.9% in the last 24 hours.
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