The United States Securities and Exchange Commission (SEC) has delayed its decision on BlackRock's proposed spot Ether (ETH) exchange-traded fund (ETF).
The United States Securities and Exchange Commission (SEC) has delayed its decision on BlackRock's proposed spot Ether (ETH) exchange-traded fund (ETF), citing the need for more time to review the proposed rule change. The delay, announced one day ahead of the January 25 deadline, marks the first of several delays the SEC can exercise across a 240-day period. This first deadline comes nearly 45 days after BlackRock filed for an iShares Ethereum Trust through Nasdaq on December 11.
BlackRock's spot Ethereum ETF has a final deadline decision date of August 7, 2024. However, Bloomberg ETF analyst Eric Balchunas believes that a final decision will be made on all pending spot Ether ETFs in May, with the analyst giving a 70% chance of approval. May 23 is the earliest final deadline of all applicants, similar to the SEC's decision on 10 pending spot Bitcoin ETFs on January 10. Other spot Ether ETF applications have final decision deadlines ranging from May 23 to August 3.
Bloomberg ETF analyst James Seyffart expects to see more spot Ether ETF delays "sporadically" over the next few months. He also further emphasized the importance of May as the crucial decision date for Ether ETFs applications. The SEC's decision-making process for spot Ether ETFs is being closely watched by the cryptocurrency industry and investors alike. The approval of spot Ether ETFs would provide a more accessible and regulated way to invest in Ether, the second-largest cryptocurrency by market capitalization.
However, the SEC's delay in deciding on BlackRock's spot Ether ETF proposal suggests that the Commission is taking a cautious approach to approving these products. The SEC's decision will likely depend on its assessment of the risks and benefits of spot Ether ETFs, as well as the adequacy of the proposed rule changes.
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