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).
