The recent decision by the U.S. Securities and Exchange Commission (SEC) to delay the approval of two exchange-traded fund (ETF) applications related to Ethereum

The applications were filed by Grayscale Investments and BlackRock, respectively. The SEC has traditionally been skeptical of spot crypto ETFs, and has only recently approved a handful of spot bitcoin ETFs.

The delay of the Ethereum ETF applications

SEC's delay of the Ethereum ETF applications is unsurprising, given its previous stance on spot crypto ETFs. However, it also notes that the delay of the applications is significant, as it raises questions about the future of Ethereum ETFs and the broader crypto market.

Details

The two applications, including the unique features of Ethereum and the potential risks associated with ETFs. It also discusses the potential impact of the SEC's decision on the crypto market as a whole, and how it could affect investor sentiment and market stability.

SEC Softening Toward ETFs?

In recent months, the SEC has approved several spot Bitcoin ETFs, which has led some to believe that the agency may be softening its stance on cryptocurrencies. This shift in perspective could potentially bode well for Ethereum ETF applications, as the SEC may be more willing to approve these types of products.

It's important to note that the SEC has been skeptical of spot crypto ETFs in the past, and it may still be hesitant to approve Ethereum ETFs without further assurances that they can be traded in a way that is consistent with investor protection.

Can Blackrock Convince SEC Again?

BlackRock, one of the world's largest asset managers, has already successfully convinced the SEC to approve one of its spot Bitcoin ETFs. With a reputation for expertise in the financial sector, Blackrock may be well-positioned to persuade the SEC to approve an Ethereum ETF.

In fact, some parties who claim to have a source within the SEC seem quite confident about the approval of spot Ether ETFs. This could potentially bode well for Ethereum ETF applications, although it's important to note that the SEC has a history of being cautious when it comes to these types of products.

Won’t Need Lawsuit To Approve Now

According to Crypto Mom, a Twitter handle that is believed to be affiliated with SEC Commissioner Hester Peirce, the SEC may be more willing to approve Ethereum ETFs in the near future. Peirce has been a vocal advocate for cryptocurrency regulation and has previously expressed support for the approval of spot crypto ETFs.

While Peirce's comments are not binding on the SEC, they do suggest that there may be a shift in the agency's perspective on cryptocurrency regulation. This could potentially bode well for Ethereum ETF applications, although it's important to note that the SEC has a history of being cautious when it comes to these types of products.


The approval of Ethereum spot ETF applications is a complex and ongoing process that involves a number of different factors. While the SEC has yet to approve any Ethereum ETFs, the recent approval of spot Bitcoin ETFs may suggest that the agency is softening its stance on cryptocurrencies.

As the crypto market continues to grow and gain mainstream acceptance, it's likely that the SEC will continue to face pressure to approve Ethereum ETF applications. While the agency has a history of being cautious when it comes to these types of products, the potential benefits of approved ETFs could be significant for investors and the broader crypto market.

References:

De, N. (2024, January 26). Spot Ether ETF Applications Decisions Delayed by SEC. Retrieved from https://www.coindesk.com/policy/2024/01/25/spot-ether-etf-applications-decisions-delayed-by-sec/

Khatri, A. (2024, January 24). Ethereum Spot ETF Applications - Where Do They Stand? Retrieved from https://cryptodaily.co.uk/2024/01/ethereum-spot-etf-applications-where-do-they-stand

Ethereum 2.0’s Update to Proof of Stake (PoS) | Gemini. (n.d.). Retrieved from https://www.gemini.com/cryptopedia/what-is-ethereum-pos-proof-of-stake#section-ethereum-2-0-a-more-resource-efficient-blockchain

elegant_solution. (n.d.). Retrieved January 13, 2024, from https://www.freepik.com/author/user28432665

Freepik - Goodstudiominsk. (n.d.). Retrieved January 5, 2024, from https://www.freepik.com/author/goodstudiominsk

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