Business News Report
January 25, 2024

SEC Extends Decision Deadline for BlackRock’s Spot Ethereum ETF to March

SEC Extends Decision Deadline for BlackRock's Spot Ethereum ETF to March

The United States Securities and Exchange Commission (SEC) extended its decision timeline regarding BlackRock investment company’s proposal for a spot Ethereum exchange-traded fund (ETF) to March 10th. This extension provides the SEC with additional time to consider whether to approve, disapprove, or institute proceedings regarding the proposal.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” said the filing, published by SEC. 

BlackRock submitted an S-1 application for its spot Ethereum ETF, called the iShares Ethereum Trust in November, which signalled BlackRock’s aim to broaden access to Ethereum for a more diverse range of investors.

The success of this venture has the potential to trigger a transformation in the digital asset sector, positioning Ethereum as an attractive investment option for individuals inclined towards traditional investment vehicles.

Experts Express Divergent Views Regarding SEC Decision on Spot Ethereum ETFs

Following the approval and commencement of trading for 11 spot Bitcoin ETFs, the broader cryptocurrency market is currently contemplating the possibility of a spot Ethereum ETF and its timing. Various cryptocurrency experts hold differing perspectives, with some expressing optimism and others caution regarding the potential emergence of such investment product. 

There is speculation that approval from the SEC could come as early as May, drawing parallels with the recent approval of spot Bitcoin ETFs earlier this month. According to Bloomberg Intelligence Senior ETF analyst Eric Balchunas, there is a 70% likelihood that May of this year will be the month when an Ethereum ETF will receive approval by the regulator.

However, James Seyffart, Bloomberg Intelligence ETF analyst anticipates delays for spot Ethereum ETF proposals to continue. “Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. Next date that matters is May 23rd,” said James Seyffart in a publication on social media platform X.

Presently, BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale and Hashdex are among the applicants seeking approval from the SEC for spot Ethereum ETFs.

SEC Extends Decision Deadline for Fidelity’s Spot Ethereum ETF

Recently, the SEC extended the deadline for deciding on the proposal from financial services company Fidelity for a spot Ethereum ETF, setting the new date to March 5. Fidelity initially submitted its application for the Fidelity Ethereum Fund in November.

In the proposal, the company cited a court ruling from the previous year, noting that judges had observed a lack of clear rationale from the SEC in rejecting spot cryptocurrency ETFs while approving products based on futures.

Additionally, SEC Chair Gary Gensler clarified that the agency’s approval of several spot Bitcoin exchange-traded products is limited to that particular cryptocurrency. Despite some expectations, there is no indication that spot Ethereum ETFs are automatically set for approval following the recent decision.

With the SEC extending the decision deadline for the spot Ethereum ETF of a second asset management company, the future of spot Ethereum ETFs remains uncertain. 

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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Alisa Davidson
Alisa Davidson

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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