SEC Postpones Verdict on BlackRock, Fidelity's Ether ETF Applications Again

The United States Securities and Exchange Commission (SEC) has once again deferred its verdict on the approval or rejection of spot Ether exchange-traded funds (ETFs) proposed by BlackRock and Fidelity.

Delay in Decision

In filings dated March 4, the SEC announced the postponement of its decision on the applications submitted by BlackRock for its iShares Ethereum Trust and Fidelity for its Ethereum Fund.

This delay follows an initial postponement made by the SEC in January, shortly after it greenlit several spot Bitcoin ETFs for launch. The SEC holds the authority to delay its decision up to three times before reaching a final resolution.

Speculation on Final Decision

The delay from the SEC comes as no surprise, with industry observers and ETF analysts speculating that the regulatory body would likely wait until the first final deadline in May to make a decisive move.

According to Bloomberg ETF analyst James Seyffart, the final deadline for VanEck's spot Ether ETF application on May 23 holds paramount importance in the context of Ethereum ETFs.

Despite the SEC's delay, the price of Ether remains buoyant, buoyed by broader market optimism surrounding the potential approval of ETFs. Ether has witnessed a remarkable 56.7% surge in the past month and remained unaffected by the recent decision.

As of the time of reporting, ETH is trading at $3,754, marking a 13% increase over the week, according to CoinGecko data.

Divergent Views on Significance

However, not all analysts share the same level of confidence regarding the significance of a spot Ether ETF compared to its Bitcoin counterpart.

According to Coin Gape, the movement of funds into Polygon and the simultaneous outflows from Solana hinted at changing investor preferences within the altcoin market. Polygon saw a significant influx of $7.6 million, constituting 22% of its Assets under Management (AuM), while Solana experienced outflows totaling $12 million. These trends underscore the dynamic nature of the cryptocurrency landscape.

While BlackRock's iShares Bitcoin ETF has already amassed a staggering $10 billion in assets under management, some analysts consider the yet-to-be-approved Ether ETFs relatively less influential.

Bloomberg ETF analyst Eric Blachunas, alongside his colleague Seyffart, indicated plans to unveil formal odds on the approval of an ETH ETF soon. Nevertheless, Blachunas characterized the pending Ether funds as "small potatoes" compared to the Bitcoin funds.

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