Multiple Ethereum exchange-traded fund (ETF) applications have been submitted to the U.S. Securities Exchange Commission (SEC), and the decision on their approval has been delayed, aligning with predictions from analysts.
As expected, the SEC postponed the decision on approving the BlackRock Ethereum ETF until May 23. Similarly, VanEck’s application for an Ethereum ETF has also been delayed. The SEC’s move follows the approval of nearly a dozen Bitcoin spot ETFs in January, sparking increased trading activity as demand for these products surges. Among the approved Bitcoin ETFs is the BlackRock iShares Bitcoin Trust, which has attracted $10 billion in assets under management (AUM) since its launch.
Many industry players remain optimistic about the approval of Ethereum ETFs, believing it to be inevitable due to high demand and Ethereum’s qualifications meeting liquidity and asset class thresholds set by the SEC.
While the U.S. deliberates, the European market has already seen success with Ethereum exchange-traded products (ETPs) for years, offering exposure to cryptocurrencies like Bitcoin and Ethereum. Providers in Europe include CoinShares, 21Shares, WisdomTree, ETC Group, Valour, and Fidelity.
It’s worth noting that in Europe, the term “ETF” cannot be used for single assets like Bitcoin or Ethereum due to specific fund regulations, leading to the use of “crypto ETP” instead. Additionally, the U.S. has regulated futures products giving investors exposure to Ethereum, approved and regulated by the Commodity Futures Trading Commission (CFTC).
Despite the momentum and institutional demand, staked Ethereum ETFs may face delays in approval in the U.S., unlike Europe where they are readily accessible. The SEC’s cautious approach towards cryptocurrency ETFs reflects its careful assessment of associated risks and regulatory considerations.