- Experts anticipate approval issues due to a lack of public engagement and technical challenges.
- Investors are interested in Ethereum ETFs to avoid directly buying and holding the cryptocurrency.
The SEC postponed its ruling on Galaxy Invesco’s request for a spot Ethereum Exchange-Traded Fund (ETF). The revised deadline for the decision is now July 5.
Reasons for the SEC’s Decision Delay
The commission will approve, reject, or begin proceedings to determine if the proposed rule change is appropriate by July 5. The SEC’s delay is longer than the time taken to approve the Bitcoin ETF in January 2024.
Industry analysts believe this delay could lead to a rejection, citing factors like limited public input, technical issues, and legal conflicts involving Consensys, an Ethereum backer.
A recent Reuters report suggests that the SEC may reject the applications by VanEck and ARK this month. Despite this, BlackRock CEO Larry Fink and Coinbase’s legal officer Paul Grewal remain positive.
Fink noted that a spot Ethereum ETF could still be launched even if the cryptocurrency is considered an unregistered security. Grewal added that the SEC lacks a solid rationale to deny the ETF applications.
This delay also impacts applications from BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares.
Experts’ Views on Ethereum ETF Decisions
Bloomberg ETF analyst James Seyffart has expressed concerns about the SEC’s decision. In a recent tweet, Seyffart expects the SEC to reject the ETF applications in May. Senior Bloomberg ETF analyst Eric Balchunas also revised the likelihood of ETF approval from 50% down to 35%.
Overview of Spot Ethereum ETFs
A spot Ethereum ETF allows investors to invest directly in Ethereum without needing to buy or store the cryptocurrency themselves. This investment vehicle helps investors gain exposure to the digital asset’s value changes. Hong Kong is the first region to approve an Ethereum ETF.
The most recent price of Ethereum (ETH) is at $3,049.64 USD, according to Yahoo Finance. Trading volume in the last 24 hours was approximately $11.23 billion.
Technical analysis: Ethereum shows volatile performance, and has recently oscillated in a range between $3,029.31 and $3,122.42. On the one-year chart, it has moved between $1,523.24 and $4,092.28, indicating a wide range of variability.
