Home Altcoins News Ethereum ETF Decision Postponed to March – Anticipation Grows Amidst Bullish Trends

Ethereum ETF Decision Postponed to March – Anticipation Grows Amidst Bullish Trends

In a recent development, the US Securities and Exchange Commission (SEC) has opted to delay the decision on spot Ethereum Exchange-Traded Funds (ETFs) until March 10, 2024. This decision echoes the sporadic delays witnessed in the approval process for Bitcoin spot ETFs, with experts speculating that the trend may persist until May 23 of this year.

The anticipation surrounding the approval of spot Ethereum ETFs in the United States has become a focal point for investors, particularly in light of the recent rebound and breakout in the crypto market. Ethereum (ETH), as the largest web3 ecosystem boasting over $30 billion in Total Value Locked (TVL) and a stablecoins market cap exceeding $69 billion, has emerged as a mature and reputable network over the years.

Following the successful approval of spot Bitcoin ETFs, there is growing optimism that the SEC will greenlight spot Ethereum ETFs in the near future. This positive sentiment has spurred Ethereum bulls to prepare for a potential rally, setting sights on surpassing the $2,500 mark and reaching an estimated target of around $3,500 in the coming months.

Taking a closer look at the Ethereum spot ETF landscape in the US, institutional demand for Ethereum as a rapidly growing investment class has surged in the past year. Despite setbacks faced by several high-profile web3-related companies in 2022, the crypto market has displayed remarkable resilience, bolstering investor confidence.

On November 21, 2023, the Nasdaq Stock Market LLC submitted a filing to the SEC to list and trade the iShares Ethereum Trust. This ETF is backed by a leading asset fund manager with an impressive $10 trillion in Assets Under Management (AUM). However, the SEC has been diligently utilizing its constitutional allowance of 240 days to thoroughly vet the applicants.

On January 24, the SEC Commission announced the decision to extend the deadline for the iShares Ethereum Trust to March 10, 2024. The Commission justified the extension, stating the need for sufficient time to thoroughly consider the proposed rule change and the associated issues. Bloomberg’s ETF analyst, Eric Balchunas, has made a bold prediction, anticipating the approval of all spot Ethereum ETFs, including those from VanECK and Ark 21Shares, by May this year.

Adding to the positive outlook, SEC Commissioner Hester Peirce has signaled that the approval of spot Ethereum ETFs is inevitable and may not require contentious court battles. This endorsement from a key SEC official further strengthens the belief that Ethereum ETFs will receive the regulatory green light in the coming months.

As the crypto community eagerly awaits the SEC’s decision, market participants are closely monitoring Ethereum’s price movements. Analysts believe that a favorable decision could serve as a catalyst for Ethereum to outperform Bitcoin in the short term. The institutional interest in Ethereum, coupled with the growing confidence in the crypto market’s resilience, sets the stage for potential bullish trends in the weeks ahead.

In conclusion, the deferment of the SEC decision on spot Ethereum ETFs to March has intensified speculation and optimism within the crypto space. Investors are eyeing potential gains, and the market is poised for significant movements depending on the outcome. As regulatory clarity inches closer, the crypto community remains on the edge of their seats, anticipating a positive turn of events for Ethereum in the coming months.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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