The Securities and Exchange Commission in the United States has pushed back its deadline for a verdict on the Ethereum spot ETFs applications submitted by BlackRock and Fidelity. This update came directly from the regulator’s platform, marking another delay in the process, the first being in January 2024 and the latest in March. This is the second time the SEC has opted to extend its review period, allowing for a total of three possible postponements.
Market participants have been invited to comment as the SEC continues to deliberate on these applications. Analyst James Seyffarth from Bloomberg speculates that the ETFs might be available by May 23, 2024. This date also aligns with the final deadline for the SEC to make a decision on a similar application from VanEck for a spot Ethereum-ETF.
Franklin Templeton, an American investment giant managing assets worth $1.5 trillion, expressed interest in launching its own Ethereum-ETF in February. The firm has chosen Coinbase as its custodian for Ethereum, planning to have the ETF’s units traded on the Chicago Board Options Exchange (CBOE).
Market Impact and Ethereum’s Performance
Interestingly, the SEC’s postponements have yet to impact Ethereum’s market price significantly. Ethereum, the market’s second-largest cryptocurrency, has seen an increase of over 7% in the past 24 hours. Its trading value has surged past $3,700, according to CoinMarketCap’s latest data. This rise accompanies a broader market trend where Bitcoin (BTC) nearly matched its highest-ever price, hitting $68,770 on March 4.
The continued delays by the SEC in approving Ethereum spot ETFs underscore the regulatory challenges facing cryptocurrency products. Despite these hurdles, the digital currency market remains buoyant, with Ethereum’s price resilience serving as a testament to the sector’s robust interest and optimism.
The inclusion of heavyweight financial institutions like BlackRock, Fidelity, and Franklin Templeton in the race to launch Ethereum ETFs signifies the growing institutional interest in cryptocurrency. As these applications undergo SEC scrutiny, the crypto community eagerly awaits a positive outcome that could further legitimize and enhance the accessibility of digital assets to a broader investor base.