Coin Edition -
- The SEC has delayed deciding on the Ethereum ETF applications by BlackRock and Fidelity.
- The commission asked commenters to explain if they agreed with the applicants.
- Bloomberg’s James Seyffart thinks the SEC will keep delaying the approval until the deadline is close.
Last Monday, the U.S. Securities and Exchange Commission (SEC) delayed deciding on the Ethereum ETF applications by BlackRock and Fidelity. Instead, the commission launched a comments period for both applications, aiming for feedback from the public on the subject.
According to reports, the SEC has asked commenters to provide opinions, explaining if they agree with BlackRock, Fidelity, Cboe, and Nasdaq’s stances. Those companies believe the arguments made for the recently approved Bitcoin ETFs can apply to Ethereum ETFs. The SEC has also requested feedback on whether spot Ether ETFs might be susceptible to manipulation and how they compare with other existing futures Ether exchange-traded products.
Based on historical patterns, the SEC’s delay in deciding on the Ethereum ETF proposals did not surprise crypto community members. Many expect the delays to continue for the coming weeks leading to the May 23 deadline.
James Seyffart, an analyst with Bloomberg Intelligence, expects continuous delays from the SEC until the final deadline is close. However, he believes the applicants’ actions ahead of the ETF deadline could signal the likelihood of imminent approval.
According to Seyffart, documentation updates by the applicants suggesting their incorporation of feedback directly from the regulator would signal more optimism. He thinks it would resemble the back-and-forth process in the weeks before the Bitcoin ETF approvals in January.
Meanwhile, the analyst highlighted that some ETF issuers have updated their filings to reflect what they learned in the Bitcoin ETF process. According to him, none of the updates involve anything specific to ETH. He thinks the SEC is not discussing theoretical issues with the applicants and has remained “close-lipped” over the issue.
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