Ethereum ETFs: US Securities and Exchange Commission Postpones Decision

The US Securities and Exchange Commission (SEC) has postponed its decision on approving Ethereum EFTs. This affected applications from BlackRock and Fidelity, which already issue Bitcoin ETFs. So Ethereum ETFs are not off the table.

Ethereum (ETH) is sometimes looking a little jealous of its big brother Bitcoin these months. The crypto reserve currency celebrated the first approval of Bitcoin ETFs in the USA in January and the following rally drove BTC to a new all-time high just yesterday. Ethereum should also follow this example, not only the crypto industry hopes. The focus is once again on the powerful US Securities and Exchange Commission (SEC), which decides whether Ethereum ETFs are legitimate on the US markets.

Read mor eon the subject and find the most important financial news of the day with our comapnion app Born2Invest.

Optimists will experience two setbacks this week

Because the SEC has postponed the decision here on the Ethereum ETF applied for by BlackRock and here on the one from Fidelity. The two applicants are among the largest asset managers in the world and have been doing brilliant business with their newly approved Bitcoin ETFs since January. Both BlackRock and Fidelity now have to prepare for a waiting period for Ethereum ETFs until at least mid-April.

Because the SEC is now asking the public to bring their opinions and arguments on the subject of Ethereum ETFs into the decision-making process. The SEC is also asking critical questions of its own, such as whether Ethereum might not have become more vulnerable to “fraud and manipulation” as a result of the protocol change “ The Merge ” in September 2022. Such formulations already reflect the fact that the SEC under boss Gary Gensler is no friend of Bitcoin and Co., but rather suspects dangers behind cryptocurrencies.

May 23 possible fate date for Ethereum ETFs

In the case of BlackRock and other applicants for Ethereum ETFs, however, the SEC’s tactics will be accepted calmly for the time being. Because in the process leading to the “green light” for Bitcoin ETFs, it wasn’t just BlackRock that had to survive a comment phase . And Wall Street officials know: BlackRock would drag the SEC to court if there was a clear “no” on Ethereum ETFs. The SEC’s latest decisions have not had a noticeable impact on Ethereum’s price curve; the delays in ETFs were widely expected.

The target date for an “OK” from the SEC on Ethereum ETFs is May 23rd . Because on this Thursday in May, the SEC could decide on more than half a dozen Ethereum ETFs in one go, on time, thereby arming itself against the reputation of favoring individual applicants. With Bitcoin ETFs, the SEC followed exactly such a plan.

Conclusion: Ethereum ETFs still on hold

Experts largely agree that sooner or later Ethereum ETFs will become a reality in the USA. But when it comes to this May or even just this year, surveys show a divided picture. Skepticism is based, among other things, on the fact that the SEC grudgingly grants Bitcoin a special role at best. In the case of Ethereum ETFs, the authority could therefore resort to wall tactics again and, if necessary, accept legal proceedings.

Meanwhile, Bloomberg experts James Seyffart and Eric Balchunas, who have become known for their precise forecasts on Bitcoin ETFs, are cautiously optimistic. They rate the probability of Ethereum ETFs this year at 60 to 75 percent and, like others, see May 23rd as a critical date. Meanwhile, March 13th is exciting for the price development of Ethereum, because then the Dencun upgrade is scheduled to go live on ETH with predictably far-reaching consequences for the ecosystem.

__

(Featured image by Kanchanara via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us