The Securities and Exchange Commission (SEC) has announced another delay in its decision regarding approving or rejecting spot Ethereum exchange-traded fund (ETF) applications from financial giants BlackRock and Fidelity.
This latest postponement, revealed in separate filings on March 4, follows a similar delay in January. Under regulatory guidelines, the SEC can defer its decision up to three times before reaching a final ruling.
May expected to be pivotal for Ethereum ETFs
Analysts are eyeing May as a crucial month for these ETFs, with May 23 specifically highlighted as a significant date, particularly in the context of VanEck’s spot Ethereum ETF application. Despite the ongoing delay, the price of Ether, the native cryptocurrency of the Ethereum blockchain, has continued its upward trajectory.
This surge is propelled by broader market optimism regarding the potential approval of Ethereum ETFs. Over the past month, Ether has recorded a remarkable 56.7% increase, surging to $3,754 at this report—an uptick of 13% for the week.
Analysts caution on the impact of Ethereum ETFs compared to Bitcoin
However, despite the optimism surrounding Ethereum ETFs, some analysts remain cautious about their potential impact compared to Bitcoin ETFs. Notably, BlackRock’s iShares Bitcoin ETF has already accumulated a staggering $10 billion in assets under management, indicating robust investor interest and confidence in Bitcoin-related investment vehicles.
Analysts James Seyffart and Eric Blachunas of Bloomberg ETF are poised to provide formal odds on approving an Ethereum ETF soon. However, they have described the yet-to-be-approved Ethereum funds as “small potatoes” compared to Bitcoin funds, hinting at the possibility of a more muted effect of Ethereum ETFs compared to their Bitcoin counterparts.
SEC’s decision to delay the approval or rejection of spot Ethereum ETFs from BlackRock and Fidelity marks another chapter in the ongoing saga of cryptocurrency ETFs. While the delay prolongs uncertainty, it hasn’t deterred the upward trajectory of Ether’s price, driven by optimism surrounding potential ETF approval.
Despite this, analysts caution that the impact of Ethereum ETFs may not match the enthusiasm seen with Bitcoin ETFs, emphasizing the need for cautious optimism among investors. As the market eagerly awaits further developments, May is a pivotal month for the fate of Ethereum ETFs.
