The cryptocurrency community has been eagerly anticipating the decision on BlackRock’s application for a spot Bitcoin ETF, with attention now shifting to Ethereum ETF proposals. Recently, the SEC announced a delay in the expected decision for Fidelity’s application. The latest news is that BlackRock’s application decision has also been postponed.
The SEC has just minutes ago decided to delay the decision on the spot ETH ETF application submitted by BlackRock. It is expected that such postponements may continue until the estimated final decision dates in mid-year (August, July). A similar postponement might soon be seen for Grayscale’s ETHE trust conversion request to a spot ETH ETF.
There is particular concern from the SEC regarding ETH’s transformation into a security following its transition to Proof of Stake (PoS). This concern is evident in the requests for comments on ETFs.
While expectations of spot ETH ETF approvals within the year had driven prices up to $2,700, the realization that this will not happen in the short term has caused prices to revert to normal. It is likely that ETH prices will continue to show weakness against BTC for some time.
At the time of writing, ETH’s price stands at $2,216, while BTC has not yet secured the $40,000 support level.