- SEC delays 21Shares’ Ether ETF decision, public comments invited.
- Market reactions show increased uncertainty.
- ETH market volatility increases around decision time.
The SEC has postponed 21Shares’ Ether ETF proposal, allowing public commentary. This postponement continues a trend of delays impacting the cryptocurrency market and causing increased volatility.
The SEC’s delay impacts Ethereum’s ETF prospects, introducing market uncertainty. Prominent analyst James Seyffart notes that such delays are common, with potential approvals not anticipated before late June or early July.
SEC’s Decision Timeline Extends Public Commentary Period
On May 23, the SEC delayed its decision regarding 21Shares’ Ether ETF custody proposal, extending the timeline for public engagement. The decision includes a 21-day period for public comments followed by a 35-day response window, indicating ongoing scrutiny of crypto-based ETFs. 21Shares and Coinbase are the primary entities affected by the delay, as Coinbase serves as custodian for the proposed ETFs.
The SEC’s delay impacts Ethereum’s ETF prospects, introducing market uncertainty. Prominent analyst James Seyffart notes that such delays are common, with potential approvals not anticipated before late June or early July.
Community reactions on Twitter show rising concern over regulatory consistency, while industry analysts cite routine nature in ETF review processes. Market reaction indicates rising uncertainty, often resulting in increased volatility for associated crypto assets.
“These kinds of SEC delays are routine and expected…I wouldn’t expect any approvals before late June or early July, with early Q4 more realistic.” – James Seyffart, ETF Analyst, Bloomberg
Ethereum Market Volatility Surges Amidst Regulatory Delays
Did you know? The SEC’s decision delay aligns with a historical trend of extended review periods for cryptocurrency ETFs, which has previously affected major digital assets like Ethereum and Bitcoin.
Ethereum (ETH), according to CoinMarketCap, is priced at $2,671.21, with a market cap of $322.49 billion. Trading volume in the last 24 hours shot up by 34.74%. Ethereum’s recent price changes include a 6.11% gain over 24 hours and a 57.88% rise in 30 days, showcasing market volatility.
Experts from Coincu suggest continued regulatory uncertainty in the ETF space may exacerbate fluctuations in Ethereum’s market performance. Attention to investor protection remains a focal point, aligning with historical SEC patterns.
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