Ethereum ETF Decision From SEC: What Are The Expectations?

The U.S. Securities and Exchange Commission (SEC) has delayed BlackRock and Fidelity's Ethereum spot ETF applications. The SEC postponed the decision dates to March, stating that it needed more time before making a decision.

BlackRock and Fidelity application postponed again

BlackRock's Ethereum spot ETF application was first filed in June 2023. The SEC had given 6 months to consider the application, but did not make a decision on January 25, 2024. With the new decision of the SEC, the decision date for BlackRock's application has been set for March 10, 2024. Fidelity's Ethereum spot ETF application was also postponed on Jan. 18, 2024, with a decision date set for March 5, 2024. With the SEC's new decision, the decision date for Fidelity's application has also been changed to March 10, 2024.

It is thought that the SEC's postponement decisions are due to the fact that it wants to evaluate the public comments and examine the applications in more detail. The SEC is assessing whether Ethereum spot ETFs provide sufficient security measures to protect investors.

Analysts: It's only a matter of time before Ethereum ETF is approved

Cryptocurrency analysts note that the SEC is under increasing pressure to approve Ethereum spot ETFs. There are currently 11 spot Bitcoin ETFs, which have facilitated institutional investors' access to cryptocurrencies. Ethereum is the second-largest cryptocurrency after Bitcoin and is also gaining significant traction among institutional investors. "We expect a spot Ethereum ETF approval in May with an estimated 75% probability," said Matt Kunke, a research analyst at crypto market-making firm GSR.

Kunke noted that the SEC's approval of Grayscale's Ethereum futures ETF shows that it is only a matter of time before spot Ethereum ETFs are also approved. Philippe Bekhazi, founder and CEO of institutional crypto trading platform XBTO, also said, "I firmly believe that we will see the approval of a spot Ethereum ETF this year." Bekhazi noted that Bitcoin and Ethereum are both listed and regulated futures on the CME and are likely considered fairly equal in the eyes of the SEC.

Bitwise CIO Matt Hougan also thinks that the path to an Ethereum ETF is clear. "However, Ethereum has a more complex structure than Bitcoin, so its timing is uncertain," Hougan said. Hougan said that there is a high probability that Ethereum will be approved in 2024, but this is not a certainty.

### Implications of ETF approval

The approval of Ethereum ETFs will be a significant development for the cryptocurrency market. These products can make it easier for institutional investors to access cryptocurrencies, allowing the market to grow further. The approval of Ethereum ETFs is also expected to have a positive impact on the price of Ethereum. By increasing Ethereum's liquidity, these products can help the price become more stable.

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