SEC Postpones Decision on BlackRock and Fidelity’s Ethereum ETFs
The U.S. Securities and Exchange Commission (SEC) has once again delayed making a decision on applications from investment giants BlackRock and Fidelity to launch Ethereum (ETH) spot exchange-traded funds (ETFs). The SEC is seeking input from market participants and has not yet reached any conclusions on the matter. This marks the second postponement, with the initial delay occurring in January 2024. The deadline for a decision on VanEck‘s spot Ethereum-ETF application also falls on May 23, 2024.
In February, asset management firm Franklin Templeton, with $1.5 trillion in assets under management, filed an application to launch an Ethereum-ETF. The plan involves entrusting the storage of ETH to Coinbase as a custodian, while the units of the Franklin Ethereum ETF would be traded on the Chicago Board Options Exchange (CBOE).
Despite the SEC’s indecision, Ethereum’s price remains unphased and has actually risen over 7% in the past 24 hours, currently trading above $3,700. This surge follows a rapid rally seen in Bitcoin (BTC), which came close to its all-time high of $68,770 on March 4.
Analyst comment
Positive news: The SEC’s postponement of a decision on BlackRock and Fidelity’s Ethereum ETFs is neutral for the market. Despite the delay, Ethereum’s price has risen over 7% in the past 24 hours, indicating positive sentiment. The market is likely to continue experiencing volatility driven by the demand for cryptocurrencies.
