ETH ETF Wait Continues as SEC Delays Decision on Two Filings

• The SEC has delayed decisions on two Ethereum ETF applications.
• The agency asserts that more time is needed to consider the applications.
• Hopes for a near approval have dwindled in recent weeks.

The Ethereum ETF watch continues.

In January 2024, the SEC finally approved spot Bitcoin ETFs , sparking a wave of optimism among crypto proponents for the approval of similar products backed by Ethereum. Over three months down the line, however, the anticipated approvals have yet to materialize as the SEC continues to kick the can down the road.

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In March 2024, the agency delayed decisions on applications from BlackRock, Fidelity, and VanEck. Now, it has done the same for applications from Franklin Templeton and Grayscale.

Franklin Templeton and Grayscale’s Ethereum ETF Applications Delayed

On Tuesday, April 23, the SEC delayed decisions on Franklin Templeton and Grayscale’s Ethereum ETF applications till June 11 and June 23, respectively.

In the separate statements outlining the decision, the SEC made the same submission, asserting that it needed more time to consider both applications.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 1, and the issues raised therein.”

The recent delays come exactly one month ahead of the long-anticipated final May 23 deadline for the agency to decide on VanEck’s Ethereum ETF application. Many had anticipated that the market regulator would approve spot Ethereum ETFs by this deadline. These hopes have, however, dissipated over the past month.

In March 2024, Bloomberg Senior ETF Analyst Eric Balchunas reiterated that analysts were keeping the odds of an Ethereum ETF approval in May 2024 at “a pessimistic 25%,” down from 70% in January 2024. The sentiments come as analysts have decried the lack of constructive engagement from the SEC, as seen in the weeks leading up to spot Bitcoin ETF approvals.

In addition to the SEC’s lack of engagement, the agency has reportedly kicked off a probe of the Ethereum Foundation in a bid to label Ethereum an unregistered security.

Read this for more on pending spot Ethereum ETF applications:

VanEck CEO: Ethereum ETFs Will “Probably Be Rejected” by SEC

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