SEC Delays Spot Ether ETF Applications From BlackRock and Fidelity


Many analysts estimate a 50% chance of the funds receiving regulatory approval by the end of May.

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The U.S. Securities and Exchange Commission has delayed the deadline for its verdict on the pending spot Ether ETF applications from BlackRock and Fidelity, the asset issuers behind the two largest spot Bitcoin funds.

The SEC pushed back both BlackRock’s and Fidelity’s applications in separate March 4 filings, requesting further feedback regarding the risk associated with Ethereum’s Proof of Stake mechanism.

The SEC questioned whether the consensus system makes Ether vulnerable to a “concentration of control or influence by a few individual entities,” potentially raising “unique concerns about Ether’s susceptibility to fraud and manipulation.”

However, the SEC also notes a high degree of correlation between the spot Ether markets and Chicago Mercantile Exchange’s (CME) Ether futures ETF at 99.93%. CME said that any prospective market manipulators would need to trade its future ETF and increase the likelihood of detection through its surveillance-sharing agreements with the Intermarket Surveillance Group.