SEC Delays BlackRock, Fidelity Decisions on Spot Ether ETFs

The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on spot ethereum exchange-traded fund (ETF) applications filed by firms from BlackRock and Fidelity, as analysts continue to be bullish that May could be a pivotal time.Bitcoin Miner

The latest delayed decision comes weeks after the agency approved several bitcoin ETFs.

SEC Delays Decision on Ether ETFs ETC Miner

On March 4, the SEC announced that it would delay its decision on the BlackRock iShares Ether Trust and the Fidelity Ether Fund.

BlackRock’s initial application, filed in November of last year, was the subject of a decision that federal regulators postponed two months later, saying they needed more time for review. Although a new deadline for a decision was set for March 10, that date has been canceled, according to agency filings.

In addition, the SEC has delayed decisions on several other spot ethereum ETF applications, including those from Fidelity, Invesco and Galaxy Digital.

Bloomberg ETF analyst James Seyffart predicts these delays could last until May 23, the final deadline for VanEck and Cathie Wood’s Ark Invest to submit their applications.

These particular applications were originally filed on September 6, 2023, with one Fidelity application dating back to 2021.The SEC first delayed its decision on these applications two weeks after they were filed.

Ether Spot ETF Raises Concerns Amid Bitcoin’s Surge

The SEC’s recent delay was not unexpected, as market watchers and ETF analysts had long anticipated that the agency would only make an approval or denial decision as the final deadline approached in early May.

Interest in spot ethereum ETFs is growing as bitcoin approaches record highs. Bitcoin’s success has been driven largely by the spot Bitcoin ETF, which attracted $1.84 billion in inflows in one week. Ether recently hit its highest price in more than a year, and expectations that a similar trend could occur for ethereum have sparked high demand.

However, not all analysts are convinced that spot ethereum ETFs will replicate the performance of their bitcoin counterparts. Bloomberg ETF analyst Eric Balchunas, who mentioned that he and Seyffart will soon release official odds on the approval of an Ether ETF, said that the yet-to-be-approved Ether fund is “a piece of cake” compared to Bitcoin-based funds.

Ether prices have been reflecting the market’s optimism about potential approvals, rising 62 percent in the past month. This upward trend continued even after the SEC announced it was delaying its decision.