Ether ETF decision on hold as SEC seeks public insight
Key Takeaways
- The SEC postponed a decision on BlackRock and Fidelity’s Ether ETF application and began a public comment period.
- Regulators seek public comment on whether claims made about Bitcoin ETFs also apply to Ethereum ETFs and concerns about market manipulation.
- Observers will be sent to May 23 for a potential update or decision.
The U.S. Securities and Exchange Commission (SEC) The decision to apply for an Ethereum (ETH) exchange-traded fund (ETF) has been postponed. Financial giants BlackRock and Fidelity filed.
This decision A public comment period has begun. Invite stakeholders to share their perspectives on the issue.
Did you know?
Do you want to become smarter and richer with cryptocurrency?
Subscribe – We post new cryptocurrency explainer videos every week!
The SEC initially delayed ruling on BlackRock and Fidelity’s proposed Ether ETF in January. The agency has the authority to postpone its decision up to three times.
Bloomberg Intelligence analyst James Seyffart noted: May 23rd may be the last day For Ether ETF applications.
With this delay, the SEC is seeking comment on whether the reasons for approving the spot Bitcoin ETF could similarly apply to Ethereum-based ETFs.
The agency is also canvassing the community. A perspective on the potential manipulation risks associated with spot Ether ETFs and the comparability between spot and futures Ether ETFs. This investigation suggests a thorough approach by the SEC to understanding the nuances of Ethereum ETFs compared to Bitcoin ETFs.
However, Bloomberg Intelligence analyst James Seyffart noted:
We have seen several updates in the last 30 days. Many of the updates to date have been to keep Ethereum filings up to date, including lessons learned from the Bitcoin ETF process. There are no updates regarding ETH.
As the industry awaits further developments, the coming weeks may provide more clarity on the future of the Ether ETF and its potential impact on the broader cryptocurrency market.
In other SEC-related news, Judge Tana Lin’s ruling supports the SEC’s opinion in the Coinbase case that secondary cryptocurrency sales were securities.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst with an interest in data-driven and fact-based content, as well as content targeting both Web3 native users and industry newcomers.
Aaron is our go-to guy for all things digital currency. With a huge passion for blockchain and Web3 education, Aaron is working to transform the space as we know it and make it more accessible to complete beginners.
Aaron has been quoted in several popular media outlets and is a published author himself. In his spare time, he enjoys researching market trends and looking for the next supernova.
