All eyes are on Ethereum following the approval of Bitcoin ETFs. That’s why Ethereum ETF continues to be a hot topic in crypto markets. However, the expected significant price movements did not materialize due to overselling and a collapse in market sentiment. Now the SEC’s negative attitude has also been added to this. In a recent development, the SEC announced that it has postponed its decision regarding Grayscale’s spot Ethereum ETF.
After Blockrock, Grayscale’s Ethereum ETF application was also postponed
The SEC took harsh steps that disrupted the positive atmosphere in the markets. These included the hacking of their accounts, the deletion of the approval announcement from the website, and Gensler’s rambling statements about approving ETFs but not Bitcoin and crypto. According to some experts, if these negative events had not occurred and Bitcoin had not experienced a $5 billion sell-off after reaching $49,000, the Ethereum price might have already exceeded $3,000. Spot Ethereum ETF has been one of the important agenda items of this year, with decision dates approaching the middle of the year.
Today, the SEC announced that it is postponing its decision on Grayscale’s application to convert the ETHE Trust into a spot Ethereum ETF product. This application aims to convert an existing product into an ETF that can be traded on exchanges, similar to GBTC’s.
SEC delays BlackRock’s spot Ethereum ETF decision
cryptokoin.comAs you follow from, the SEC has postponed the decision schedule on BlackRock’s spot Ethereum ETF to March. Accordingly, the SEC said, “The Commission finds it appropriate to establish a longer period for taking action on the proposed rule change in order to have sufficient time to consider the proposed rule change and the issues raised herein.” said.
The SEC now has until March 10 to approve, disapprove, or take additional action on this fund. BlackRock filed for a spot Ethereum ETF called iShares Ethereum Trust in November. The SEC also delayed Fidelity’s application for the Fidelity Ethereum Fund, according to a filing last week. Bloomberg ETF analyst James Seyffart said delays will likely continue for spot Ethereum ETF offerings. “Spot Ethereum ETF Delays will continue to occur sporadically over the next few months,” Seyffart said. “The next important date is May 23,” he said.
Will there be a spot Ethereum ETF?
Crypto experts are both optimistic and pessimistic that a spot ETH ETF is on the horizon. Earlier this month, the SEC approved spot Bitcoin ETFs. Some experts predict that this will be followed by an approval from the SEC for the Ethereum ETF as early as May. SEC Chairman Gary Gensler threw some cold water on the idea of other crypto-related exchange-traded products. Speaking at a media briefing earlier Wednesday, Gensler said:
As I said two weeks ago, what we do with respect to products traded on the Bitcoin exchange is limited to this non-commodity security and should not be read as anything other than that.
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