BlackRock’s Ethereum ETF Hit by SEC Delay; Approval May Take Until May

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BlackRock’s Ethereum ETF Hit by SEC Delay; Approval May Take Until May
  • SEC delays decision on BlackRock’s spot Ethereum ETF application, extending the deadline to March 10.
  • Analysts, including Bloomberg’s James Seyffart, predict sporadic delays until late May, with a final decision on May 23.
  • Issuers are monitoring SEC staff signals for willingness to engage on Ethereum ETF applications, similar to spot Bitcoin ETFs.

The introduction of spot Ethereum exchange-traded funds (ETFs) seems to be taking time, as the Securities and Exchange Commission (SEC) has delayed its decision on BlackRock’s application. This further postpones the potential for wider investor access to the world’s second-largest cryptocurrency.

The SEC, in a recent filing, cited the need for “sufficient time to consider” the proposal and the surrounding issues, extending the deadline for a decision to March 10. This follows a similar delay for Fidelity‘s Spot Ethereum ETF application, with a decision now expected by March 5.

Notably, the SEC’s pushbacks echo the familiar pattern seen with spot Bitcoin ETFs, which faced extensive delays before finally breaking through in January.

Analysts, like Bloomberg’s James Seyffart, saw this coming. Citing historical patterns, he predicts further sporadic delays until late May, with a definitive answer arriving on May 23.
The SEC’s internal skepticism towards crypto is no secret. Chairman Gary Gensler’s past remarks hinted at reluctance, making the Bitcoin ETF approval seem almost forced. Despite this, optimism about Ethereum prevails.

SEC Commissioner Hester Peirce, known for her pro-crypto stance, suggests that spot Ethereum ETFs may be approved without court intervention. She proposes applying traditional ETF standards to crypto, potentially easing the approval process.

While eyes are on Ethereum, other crypto hopefuls wait in the wings. The XRP community awaits news on a potential XRP ETF, but legal challenges make its launch in 2024 less likely, according to Seyffart.

Meanwhile, Fox Business’ Eleanor Terrett reports that in the meantime, issuers and investors are watching for signs from the SEC staff to gauge their willingness to engage with the Ethereum ETF applications, similar to their involvement with the spot Bitcoin ETFs.

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