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SEC Delays Decision on BlackRock and Fidelity's Ethereum ETF Proposals

As expected: SEC postpones Ethereum ETF verdict

The United States Securities and Exchange Commission (SEC) has once more postponed its decision on the spot Ethereum ETF applications from leading financial firms BlackRock and Fidelity. This delay was announced in separate filings on March 4, marking another pause in the approval process for BlackRock's iShares Ethereum Trust and Fidelity's Ethereum Fund. This sequence follows an earlier postponement in January, which occurred shortly after the SEC green-lighted a series of spot Bitcoin ETFs, introducing a procedural window that permits up to three deferrals before a definitive conclusion is reached.

"The SEC first delayed its decision on BlackRock’s and Fidelity’s Ether ETF applications in January, shortly after it approved a roster of spot Bitcoin (BTC) ETFs to go live," 

With a final decision deadline looming in May, anticipation within the investment community continues to build.

Market anticipation and analyst insights concerning Ethereum ETF

As the SEC deliberates on the Ethereum ETF proposals by BlackRock and Fidelity, the cryptocurrency market remains buoyant, fueled by the potential of regulatory approval. Bloomberg ETF analyst James Seyffart pinpointed May 23 as the critical deadline for the SEC's decision on VanEck's spot Ethereum ETF application:

"May 23 — the final deadline for VanEck’s spot ETH ETF application — is the 'only date that matters' when it comes to Ethereum ETFs."

This sentiment is echoed by the market's response to the SEC's deliberation timeline. Despite the regulatory uncertainty, the price of Ether has seen a remarkable increase, posting gains of 56.7% in the last month. At the time of publication, Ether's trading price has climbed to $3,754, marking a 13% rise for the week, according to CoinGecko data.

However, not all analysts are convinced of the transformative impact a spot Ether ETF might have, especially when compared to its Bitcoin counterparts. Bloomberg's Eric Blachunas suggested that while expectations for an Ethereum ETF approval are high, the reality may not live up to the hype, remarking on the yet-to-be-approved funds as “small potatoes” compared to the already successful Bitcoin ETFs, highlighting the stark contrast in market impact and investor interest between the two types of cryptocurrency funds.