Golden Finance reports that the U.S. Securities and Exchange Commission (SEC) has decided to delay its decision on the staking option of the Franklin Spot Ethereum ETF. This delay decision has brought new uncertainties to the cryptocurrency market, especially in the investment field related to Ethereum.
Previously, the SEC has taken many actions in the approval of cryptocurrency ETFs. After the successful approval of the Bitcoin spot ETF, market expectations for the approval of the Ethereum spot ETF have significantly increased. However, the approval process for Ethereum spot ETFs has not been smooth sailing. The SEC has repeatedly postponed its decision on the Ethereum spot ETF applications submitted by institutions including BlackRock. Applications for Ethereum spot ETFs from different institutions face various regulatory considerations during the approval process. The delay in the resolution on the staking option of the Franklin Spot Ethereum ETF this time is another manifestation of the cautious regulatory attitude.
Ethereum and Bitcoin differ in technology, application scenarios, and market positioning. The consensus mechanism of Ethereum has shifted from Proof of Work (PoW) to Proof of Stake (PoS), which makes it possible for the SEC to classify Ether (ETH) as a security rather than a commodity when classifying it. This undoubtedly increases the complexity of the approval process for Ethereum spot ETFs. As an important part of the Ethereum proof-of-stake mechanism, the compliance and risk assessment of the staking option in ETF products are the focus of the SEC’s attention.
For investors, this delay decision by the SEC may affect their short-term decisions on investing in Ethereum spot ETFs. Investors who originally expected to participate in Ethereum staking returns through this ETF have no choice but to continue waiting for a clear regulatory stance. From the perspective of the overall market, this delay may to some extent dampen the market’s enthusiasm for investing in Ethereum spot ETFs, but it also prompts market participants to more carefully assess the risks and opportunities involved.
It is still unclear when the SEC will resume its decision on the Franklin Spot Ethereum ETF staking option. This will depend on the progress of the SEC’s work in various aspects such as related risk assessment and compliance review. The cryptocurrency market will closely monitor the subsequent development of this event and looks forward to clear guidance from regulators to promote the healthy development of the Ethereum spot ETF market.
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