The U.S. Securities and Exchange Commission (SEC) has postponed its decision on 21Shares' Ether ETF, which is resulting in increased volatility in the cryptocurrency market.
Extension of Public Commentary Period
On May 23, the SEC delayed its decision on the 21Shares Ether ETF custody proposal, extending the timeline for public engagement. This decision includes a 21-day period for public comments followed by a 35-day response window, indicating ongoing scrutiny of crypto-based ETFs.
Community and Analyst Reactions
Community reactions on Twitter show rising concern over regulatory consistency, while industry analysts cite the routine nature in ETF review processes. "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
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. Currently, Ethereum (ETH) 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%, with recent price changes including a 6.11% gain over 24 hours and a 57.88% rise in 30 days, showcasing market volatility.
The SEC's postponement regarding the Ether ETF continues to cause market uncertainty and increase volatility, which may affect investor behavior in the future.
