Key Takeaways:

The SEC has deferred its decision on BlackRock and Fidelity’s spot Ethereum ETF proposals, with a final verdict anticipated in May.
This marks the second postponement by the SEC, following the approval of several spot Bitcoin ETFs.
Despite regulatory delays, Ethereum’s price has rallied, posting a 56.7% gain over the last month, unaffected by the SEC’s recent announcement.
May 23 is highlighted as a critical date for Ethereum ETF decisions, particularly for VanEck’s application.
Analysts debate the potential impact of an Ether ETF, comparing it to the significant success of Bitcoin ETFs, with some viewing Ethereum ETFs as less consequential.

The U.S. Securities and Exchange Commission (SEC) has once again postponed its verdict on the proposed spot Ethereum ETFs by financial giants BlackRock and Fidelity, despite expectations pinning May as the critical month for a decision. This delay follows an initial postponement in January, coming after the SEC green-lit several spot Bitcoin ETFs. The SEC has the authority to defer its decision up to three times before reaching a conclusive verdict.

BlackRock aimed to launch its iShares Ethereum Trust, and Fidelity proposed its Ethereum Fund, both of which are now in a holding pattern until the SEC makes its final call. Market experts had anticipated this delay, with significant attention focused on May 23, the ultimate deadline for VanEck’s spot Ethereum ETF application, as highlighted by Bloomberg ETF analyst James Seyffart. This date is seen as pivotal for the future of Ethereum ETFs.

SEC just delayed @InvescoUS & @galaxyhq's #Ethereum ETF. 100% expected and more delays will continue to happen in coming months.

The only date that matters for spot #ethereum ETFs at this time is May 23rd. Which is @vaneck_us's final deadline date pic.twitter.com/gkVZL2QuPK
— James Seyffart (@JSeyff) February 6, 2024

Amid these regulatory uncertainties, Ethereum’s price has seen a notable increase, surging by 56.7% over the past month, unaffected by the SEC’s recent decision to delay. At present, Ethereum trades at $3,754, marking a 13% rise this week, according to CoinGecko.

The impact of a potential spot Ether ETF approval remains a topic of debate. While the SEC’s approval of spot Bitcoin ETFs, such as BlackRock’s iShares Bitcoin ETF—which amassed $10 billion in assets under management—demonstrates significant market enthusiasm, some analysts, including Bloomberg’s Eric Balchunas, question the comparative significance of Ethereum ETFs, labeling them as “small potatoes” next to their Bitcoin counterparts.

Yeah @JSeyff and I will have formal odds out soon but tbh and no offense to the eth ppl but this is such small potatoes vs spot bitcoin ETFs. It's like the opening act coming on after the headliner. Using GenX bands it's like Sister Hazel trying to follow Nirvana.
— Eric Balchunas (@EricBalchunas) March 2, 2024

Formal predictions regarding the likelihood of an Ethereum ETF approval are expected to be released by analysts soon.