The SEC has reportedly pushed back on deciding on BlackRock’s proposal for a spot in Ethereum ETF. The US regulator said it needed more time to review the proposal.
The SEC explained in its filing, “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.”
SEC Postpones Ruling on BlackRock’s Proposed Spot Ethereum ETF
Wednesday’s delay is the first of many delays the SEC could use during a 250-day window. BlackRock applied for its spot Ethereum ETF, known as the iShares Ethereum Trust, late last year, joining other institutions with similar interests.
Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. Next date that matters is May 23rd https://t.co/2zBBvHkrVk
— James Seyffart (@JSeyff) January 24, 2024
Bloomberg Intelligence ETF analyst, James Seyffart, took to X to share his views on the spot Ethereum ETF applications. Seyffart expects the SEC to continue its delay tactics, as it did with bitcoin ETFs last year.
However, another Bloomberg analyst, Bloomberg Eric Balchunas, believes the regulator could likely make a final decision for all applications in May, as most of the applicants have a deadline of May, June, and August.
For those wondering.. the SEC isn't in a legal position to deny. Why? Because they approved a commodities futures ETH ETF just months ago. They've literally already consented to Ethereum being a commodity by way of approval. This is not opinion or emotion.. this is fact.
— Etherean Maximus ⚔️ (@EthereanMaximus) January 24, 2024
BlackRock and other institutions faced an uphill battle in securing the SEC’s approval for a spot Bitcoin ETF. However, Hester Pierce, an SEC Commissioner, assured applicants that a legal battle won’t be necessary to get the SEC to approve a spot Ethereum ETF.
She wrote, “We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ for us to get it right.”
Crypto Enthusiasts Express Mixed Feelings
Crypto experts have expressed mixed feelings about the prospect of a spot ether ETF. Some believe approval may come during the second quarter of the year. However, Gary Gensler, the chair of the SEC, in a recent media briefing, shot down the concept of other cryptocurrency-linked exchange-traded products.
He said, “As I said two weeks ago, that which we did about bitcoin exchange-traded products is cabined to this one commodity non-security and shouldn’t be read to be anything other than that.”
The SEC delays the approval of BlackRock Ethereum spot ETF.
You and I know it can be delayed multiple times but it’s invevitable.
Solana ETFs would be next😮💨 pic.twitter.com/kEigMNmMTI
— Loretta Crypto (@LorettaKrypto) January 24, 2024
Interestingly, the president and COO of ARK Invest, Tom Staudt, is optimistic about the possibility of Ethereum ETFs. Staudt believes the progressive communication with regulators is a positive sign, noting that “this is not the same place where we were on the timeline with Bitcoin at this stage.”
Staudt also points out that the successful approval of spot Bitcoin ETFs has contributed to the increased legal, operational, and philosophical knowledge of potential issuers.
