SEC Postpones Approval Of Ethereum ETFs, Seeks Public Feedback

The U.S. Securities and Exchange Commission (SEC) decided to postpone its approval of the Ethereum Exchange Traded Funds (ETF) application filed by BlackRock and Fidelity. Following this decision, the SEC initiated a comment period for both applications, seeking input from the public on this matter. 

Based on the reports, the SEC asked the public to provide their opinions towards BlackRock, Fidelity, and Nasdaq’s application. The companies believe that presenting the same argument on the recently approved Bitcoin ETFs can work on Ethereum ETFs. The SEC also asked for feedback on whether the spot ETH ETF could be a form of manipulation and how they would compare with other existing ETFs.

James Seyffart, an analyst from Bloomberg Intelligence, expects that there will be further delays in the following weeks, with May 23rd being the date to keep an eye on. By that time, the SEC should have a decision about the ETH ETF application. However, signs show that the SEC might consider reviewing the application over the next month or so. 

Seyffart also added that if the applicants release documentation updates indicating their feedback from the SEC, it would trigger more optimism toward the ETH ETF. He also thinks that it would resemble the exchange of information in the weeks before the Bitcoin ETF approvals last January. 

Furthermore, Seyffart also pointed out that certain ETF issuers have already updated their filings to show what they have learned from the Bitcoin ETF process. However, he believes that none of the updates are related to anything specific to Ethereum (ETH) as the SEC is not engaging in discussions about the theoretical issues with the applicants and remained silent over the issue. 

As of this writing, Ethereum (ETH) is trading at $3,778, 0.87% lower within the last 24 hours.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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