SEC delays decision on Ethereum ETF applications
The US Securities and Exchange Commission (SEC) has postponed its ruling on applications by two major financial firms, Grayscale Investments and BlackRock, to launch spot exchange-traded funds (ETFs) based on the cryptocurrency Ethereum.
The decision comes just weeks after the regulator approved the first spot bitcoin ETFs in a landmark move for the crypto industry. However, expectations that Ethereum-based products would swiftly follow have been put on hold.
Ethereum is a decentralised blockchain platform that establishes a peer-to-peer network which securely executes application code called smart contracts, enabling participants to transact without a trusted central party.
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Ethereum has rallied 19% over the last six months amid rising interest in crypto, but prices softened 0.25% to $2,212 on Friday morning following the SEC delays.
Spot crypto ETFs allow mainstream investors easy exposure to digital token prices without having to buy them directly. The SEC’s hesitance has slowed momentum for companies like Grayscale and BlackRock aiming to expand their footprint in the rapidly evolving crypto asset sector.
