Ethereum ETF on Hold as SEC Delays Approval, Pushes Date to March

In a move that left many surprised, the Securities and Exchange Commission (SEC) has delayed the approval date for the Ethereum ETF from January 20, 2024, to March 5, 2024. The extension request, submitted by Cboe BZX in November, has sparked considerable discussion within the financial community (understandably so!).

Well, what now?

Understanding the SEC’s Decision

The SEC stated,

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,”

This delay has prompted various reactions from analysts and industry figures. Bloomberg senior analyst Eric Balchunas, known for his insightful tweets, has predicted an Ethereum ETF in May with a 70% chance. Were people expecting this?

Also Read: Why is Bitcoin’s Price Plunging Despite Spot ETF Approvals? Peter Schiff Weighs In

Potential Impact of an Approved ETH ETF

Had the Ethereum ETF received approval, it would have seamlessly integrated Ethereum-based investments into mainstream financial markets. Investors would gain the ability to buy and sell shares on traditional stock exchanges, marking a huge moment for Ethereum’s broader market presence.

An approved Ethereum ETF would provide indirect exposure to the crypto market, catering to investors seeking diversified options. Operating under established financial regulations, it stands to boost investor confidence and offer substantial regulated investment choices.

Expert Insights

Bloomberg analyst James Seyffart also shed light on the matter, reinforcing that the delay was somewhat anticipated. According to their projections, May 2024 is now the expected timeframe for Ethereum ETF approval.

Read More About This: SEC Might Approve Ethereum ETF in May : Predicts Bloomberg

Contrary to initial concerns, the delay appears to be advantageous for the SEC. This extension allows the regulatory body more time to thoroughly review proposed rule changes and focus on addressing potential issues that could impact investors negatively.