Ethereum ETF Decision Delayed by SEC, Affecting Major Players like BlackRock and Fidelity
The U.S. Securities and Exchange Commission (SEC) has announced a two-month delay in its decision on Invesco Galaxy’s spot Ether ETF application, pushing the deadline to July 5. The agency cited the need for additional time to examine the application, particularly due to the involvement of Ethereum, which it considers a potential security.
This delay follows a series of similar postponements that have affected all eight firms seeking to launch their own Ethereum ETFs, including industry giants like BlackRock and Fidelity. The SEC’s cautious approach can be attributed to the increasing political scrutiny faced by SEC Chair Gary Gensler.
The ultimate deadline for VanEck’s Ethereum ETF application has been set for May 23, which Bloomberg ETF analyst James Seyffart considers to be the most important date. In March, Seyffart expressed diminishing hope for approval, a sentiment echoed by Senior Bloomberg ETF analyst Eric Balchunas, who revised his optimism regarding the SEC’s approval from 50% to 35%.
Despite these setbacks, Ethereum advocate Anthony Sassano remains hopeful, pointing to the SEC’s prior approval of Ether futures ETFs and the significant meetings between the regulator, Grayscale, and Coinbase as potential indicators of a positive outcome.
ETF analysts, however, remain skeptical. Seyffart has shifted from being “cautiously optimistic” to expecting outright rejection of the Ether ETF applications by May 23. This skepticism stems from the SEC’s lack of communication with prospective fund issuers and the mounting political pressure on Gensler.
Nevertheless, market watchers eagerly await the forthcoming decisions, as a positive outcome could have a significant impact on the cryptocurrency markets, highlighting the high stakes involved.
The SEC’s decisions in the coming months will have a profound impact on the regulatory and market landscape for Ethereum in the United States. With major applications pending and critical deadlines approaching, the outcomes will signal the SEC’s long-term stance on cryptocurrency ETFs. Stakeholders are anxiously awaiting a decision that could pave the way for wider acceptance and integration of cryptocurrency into mainstream financial services.