SEC Delays Decision on BlackRock and Fidelity’s Ethereum ETF Applications
The U.S. Securities and Exchange Commission (SEC) has once again postponed making a decision on the Ethereum (ETH) exchange-traded fund (ETF) applications submitted by investment giants BlackRock and Fidelity. The regulatory body will be launching comment periods for both applications to assess the sufficiency of the proposals.
Both BlackRock and Fidelity initially filed their applications to create Ethereum ETFs in November, however, the SEC delayed the decision in January after approving several Bitcoin (BTC) ETFs. The SEC is allowed to postpone its decision up to three times before reaching a final verdict, with the first deadline set for May. The SEC expressed concerns about the underlying assets held by the proposed funds, leading them to seek public comments on specific features of the Ethereum ecosystem that may raise unique concerns about fraud and manipulation.
Uncertain Outlook for BlackRock’s Ethereum ETF
Analysts are unsure whether BlackRock’s spot Ethereum ETF will receive approval this year. The decision may be influenced by the policy landscape in the U.S., which could also impact the success of BTC-based ETFs. BlackRock’s IBIT currently manages $11.5 billion in assets, while the U.S. spot BTC ETFs collectively manage around $50 billion.
Ether Price Soars as Approval Anticipation Builds
In the midst of anticipation for the potential approval of spot ETH ETFs, the price of ether has surged to new two-year highs, surpassing $3,800. At the time of writing, ETH is trading at $3,879.97, marking a 3.9% increase for the day, according to data from CoinGecko.
Positive Momentum for Ether Amidst Major Upgrade
The enthusiasm for the Ethereum network’s upcoming major upgrade, Dencun, has also contributed to ether’s positive performance. Dencun, which is set to go live on the mainnet on March 13, will introduce proto-danksharding to the leading proof-of-stake blockchain. This feature aims to reduce transaction costs for layer-2 solutions, improve data availability, and address scalability issues.
Analyst comment
Positive news: The SEC has delayed its decision on BlackRock and Fidelity’s Ethereum ETF applications, launching comment periods to assess the proposals. Ether’s price has soared to new two-year highs, reaching $3,879.97 amid anticipation for the potential approval of spot ETH ETFs. The enthusiasm for Ethereum’s upcoming major upgrade, Dencun, has also contributed to the positive momentum for ether. Therefore, the market is expected to continue to experience growth and optimism in the short term.
