SEC Further Delays Decision on BlackRock’s Spot Ethereum ETF to March
In Brief
The United States Securities and Exchange Commission has once again extended its timeline for addressing BlackRock’s proposal concerning a spot Ethereum ETF to March 10.
The United States Securities and Exchange Commission ( SEC ) has deferred its timeline pertaining to BlackRock the investment firm's proposal for a spot Ethereum exchange-traded fund (ETF) to March 10. This extension is crucial as it gives the SEC additional bandwidth to evaluate the proposal, which includes deciding whether to approve, reject, or initiate further proceedings related to it.
"The Commission deems it necessary to allow more time to deliberate the proposed rule changes and the associated matters raised,\" the SEC filing stated.
BlackRock submitted an S-1 application for its spot Ethereum ETF , initially named the iShares Ethereum Trust back in November, which indicated BlackRock's intention to offer Ethereum investments to a wider audience.
The potential success of this initiative could significantly reshape the digital asset landscape, making Ethereum a compelling investment avenue for those who typically favor traditional assets.
Experts Share Mixed Opinions on SEC's Stance on Spot Ethereum ETFs
With the recent approval and launch of spot Bitcoin ETFs, there is much speculation within the larger cryptocurrency community regarding the timing and likelihood of a spot Ethereum ETF becoming available. Experts in the field exhibit a range of views; some are optimistic while others urge caution concerning the future of such a financial product. 11 spot Bitcoin ETFs There are talks that the SEC might give its nod for such an ETF by as early as May, taking cues from the recent green light given to spot Bitcoin ETFs. Bloomberg Intelligence's Senior ETF analyst Eric Balchunas has noted a 70% probability that an Ethereum ETF could gain approval in May.
Conversely, analyst James Seyffart from Bloomberg Intelligence anticipates ongoing delays for spot Ethereum ETF applications. \"We will see sporadic delays for spot Ethereum ETFs over the next few months. The key date to watch is May 23,\" he stated in a post on social media platform X.
Currently, BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are among several entities seeking SEC clearance for spot Ethereum ETFs.
SEC Postpones Decision on Fidelity’s Spot Ethereum ETF
The SEC has pushed back its decision regarding Fidelity's spot Ethereum ETF proposal, establishing a new deadline of March 5. Fidelity had originally put forward its application for the Fidelity Ethereum Fund in November.
Recently, the SEC extended the deadline In its proposal, Fidelity referenced a court decision from last year, highlighting that judges had remarked on the SEC's lack of solid reasoning in rejecting spot cryptocurrency ETFs while approving futures-based products.
Moreover, SEC Chair Gary Gensler reiterated that the approval the agency granted for several spot Bitcoin exchange-traded products should be seen as specific to Bitcoin alone. Hence, expectations that spot Ethereum ETFs would receive a quick thumbs-up following the recent decisions appear to be unfounded.
With the SEC having extended the deadline for yet another asset management company regarding spot Ethereum ETFs, the future of these financial products remains in limbo.
Securities and Exchange Commission
Disclaimer
In line with the Trust Project guidelines Alisa, a dedicated journalist at Cryptocurrencylistings, specializes in cryptocurrency, zero-knowledge proofs, investments, and the vast spectrum of Web3. With her sharp focus on emerging trends and technologies, she offers thorough coverage that both informs and captivates readers navigating the ever-changing digital finance landscape.
