SEC postpones Ethereum ETF application

In November, BlackRock filed an application for an Ethereum Spot ETF with the SEC. The U.S. authority has now delayed its decision.

The Securities and Exchange Commission (SEC) has rejected BlackRock's application for a Ethereum Spot ETF deferred. This is evident from official documents from the U.S. securities regulator.

The authority needs more time to review the application for legal requirements, particularly compliance with the Securities Exchange Act.

The SEC did not specify an exact date in the document.

A possible deadline, however, would be May 23. The SEC must then decide on a similar application from asset manager VanEck. Experts such as Bloomberg analyst James Seyffart assume that the BlackRock Ethereum ETF could then also get the green light.

The world's largest asset manager had already filed the application in mid-November last year.

Unlike the approval of Bitcoin ETFs in January, Ethereum is still subject to legal clarification on classification of the cryptocurrency as a security. The SEC has been ambivalent about this in the past.

Nonetheless, the ETH price rose to a new annual high of $3,732 in anticipation of the Ethereum Spot ETF. The second most valuable cryptocurrency is still about 31 percent away from its all-time high of $4,891.

The next price target should initially be $4,000.