SEC Delays Decision on BlackRock and Fidelity’s Ethereum Spot ETFs
The US Securities and Exchange Commission (SEC) has recently postponed its decision on the applications for Ethereum Spot ETFs submitted by investment giants BlackRock and Fidelity. This comes amidst a period of regulatory uncertainty as the SEC seeks public input on these new cryptocurrency investment proposals.
Decision in Limbo
The SEC has launched comment periods for BlackRock and Fidelity’s Ethereum Spot ETF applications, thereby delaying any decision on these potential funds. The regulator aims to gather public opinions on the validity of arguments that led to the approval of Bitcoin Spot ETFs and whether these can be applied to ETFs holding ether. Furthermore, the SEC is investigating potential manipulation of Ethereum Spot ETFs and similarities between spot and futures exchange products for ether.
Key Date of May 23rd
James Seyffart, an analyst at Bloomberg Intelligence, highlights May 23rd as a crucial date. By this deadline, the SEC should have made a final decision on the applications. Seyffart also notes that future updates to the applications may reveal clues about the SEC’s direction. If these updates indicate the incorporation of the regulator’s feedback, it could signal a positive development for the approval of Ethereum Spot ETFs.
So far, issuers have already submitted several updates to their applications, mainly drawing from the lessons learned from the Bitcoin ETF application process, rather than responding to specific SEC guidelines.
Seyffart mentions that while updates have been made, they appear to reflect an upgrade based on the experience gained from BTC ETF applications, rather than precise recommendations regarding Ethereum.
