Cryptocurrency investors eagerly awaited the decision announcement regarding BlackRock’s application. Following the approval of the spot BTC ETF, attention turned to Ethereum ETF applications. Last week, the expected decision for Fidelity was announced as a postponement. Now, the decision on BlackRock’s application has been revealed.
BlackRock Spot ETH ETF
The SEC announced a few minutes ago a postponement decision regarding the spot ETH ETF application made by BlackRock. It is expected that these postponement decisions will be repeated until the estimated final decision dates in the middle of the year (August, July). We might also see a similar decision soon for Grayscale’s ETHE trust’s request to be converted into a spot ETH ETF.
The SEC particularly shares concerns that ETH might be considered a security, especially after the transition to PoS. We see this in the requests for comments on ETFs as well.
Although expectations for the approval of spot ETH ETF applications within the year drove the price to $2,700, the clarity that this will not happen in the short term has led the price to return to normal. It is likely that the ETH price will continue to show weakness against BTC for a while longer.
As this article is being prepared, the price of ETH is at $2,216, while BTC has not yet secured the $40,000 support level.