The wait for a decision on the first Ethereum exchange-traded fund (ETF) continues. The U.S. Securities and Exchange Commission (SEC) has postponed its ruling on yet another application, leaving the crypto industry in limbo.
Grayscale and BlackRock Increase Investments:
Despite the delay, major financial players aren’t giving up. Grayscale Investments (ETCG: OTC) has filed an S-3 registration statement with the SEC. This move goes beyond routine paperwork and signals Grayscale’s intent to convert its existing Ethereum Trust into a fully-fledged spot ETF.
BlackRock (BIT: NYE) the world’s biggest asset manager, is also making its presence felt. Their recent involvement in the ETF space has many speculating about a potential Ethereum ETF offering of their own.
The SEC’s Hurry Up and Wait Approach:
The SEC’s reputation for delaying decisions precedes them. This “hurry up and wait” approach has left market participants frustrated and forced to make last-minute adjustments due to eleventh-hour postponements.
While Grayscale and BlackRock’s actions suggest confidence, the overall sentiment surrounding Ethereum ETF approval remains cautious. Bloomberg’s Eric Balchunas, a leading ETF analyst, has significantly downgraded his approval prediction from 70% to a mere 25%. Prediction markets also reflect this pessimism, with Polymarket offering only a 9-11% chance of a green light by May’s end.
Conclusion:
As May is coming up, everyone’s watching to see if the U.S. Securities and Exchange Commission will make a decision about Ethereum-based exchange-traded funds (ETFs).
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
