(TrendHub KR – Posts by ICARUS Journalist) The U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it has delayed its decision on a proposed spot ether (ETH) exchange-traded fund (ETF), a joint venture between Invesco and Galaxy Digital. This postponement aligns with the expectations of analysts, notably James Seyffart from Bloomberg Intelligence, who commented that the delay was “100% expected,” and anticipates further delays in the coming months. Seyffart highlighted that, currently, the only significant date for spot Ethereum ETFs is May 23, marking VanEck’s final deadline.
The proposed ETF aims to provide professional investors with direct exposure to spot ether. Presently, ether futures listed on the Chicago Mercantile Exchange (CME) are among the few avenues available for regulated U.S. investors and funds to invest in Ethereum’s growth.
This postponement follows the SEC’s previous delays in January regarding Grayscale Investments’ application to convert its Ethereum trust product (ETHE) into an ETF and a decision on BlackRock’s application for an ether ETF. Despite these successive delays, financial giants are optimistic, expecting ether’s price to surge by as much as 70% in the coming months in anticipation of ETF approvals in May.
“Leading up to the anticipated approval date on May 23, we expect ETH prices to either track or outperform bitcoin (BTC) during the corresponding period,” stated a note from Standard Chartered Bank in January.
According to data, ETH has emerged as the top gainer among major cryptocurrencies over the past 24 hours, with a 2.2% increase.
Dual Insight Analysis
Positive Perspective:
The SEC’s delays in deciding on Ethereum ETFs could present a greater opportunity for investors in the long run. Approval of ETFs would enhance the legitimacy and confidence in Ethereum and the broader cryptocurrency market, offering greater accessibility to institutional investors. This could lead to an expected rise in Ethereum prices, potentially benefiting long-term investors.
Negative Perspective:
On the other hand, the SEC’s continuous postponements add uncertainty to the market and may create unease among investors. This could lead to increased market volatility in the short term and prompt investors to seek alternative assets. Additionally, delays in ETF approvals may cause investors to doubt the long-term value of Ethereum, potentially negatively impacting its price.
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