Key Takeaways
- SEC cited the need for additional time to thoroughly evaluate the proposed rule change .
- SEC is obligated to make a final decision on BlackRock’s spot Ethereum ETF by August 7.
The Securities and Exchange Commission (SEC) has extended its decision timeline on BlackRock’s proposal for a spot Ethereum exchange-traded fund (ETF) to March, as disclosed in a recent filing. The regulatory body cited the need for additional time to thoroughly evaluate the proposed rule change and the associated concerns.
The extended timeline now sets a deadline of March 10 for the SEC to either approve, disapprove, or initiate further proceedings regarding BlackRock’s proposed fund, known as the iShares Ethereum Trust. This move comes after BlackRock filed for the spot Ethereum ETF in November, seeking regulatory approval for the innovative investment vehicle.
In a press release following recent bitcoin ETF approvals, SEC Chair Gary Gensler emphasized that any decision on Ethereum ETFs should not be interpreted as an indication of the Commission’s predisposition to approve listing standards for crypto asset securities.
The SEC’s decision to delay BlackRock’s proposal occurred just one day before the original deadline on January 25, marking the first of several potential delays within a 240-day period. This initial deadline falls approximately 45 days after Nasdaq filed for the iShares Ethereum Trust on BlackRock’s behalf in mid-December.
The SEC is obligated to make a final decision on BlackRock’s spot Ethereum ETF by August 7. Ethereum, considered by many as the next likely candidate for a spot ETF approval in the U.S., has garnered increased attention from traders following the fervor surrounding Bitcoin ETF approvals last year.
JPMorgan’s analysis suggests that Ethereum’s shift from a proof-of-work to a proof-of-stake consensus mechanism in 2022, impacting decentralization, positions Ether more similarly to other altcoins outside of Bitcoin. Some altcoins have previously been classified as securities by the SEC. JPMorgan places the likelihood of the SEC approving the ETF by May at no more than 50%.
Other contenders in the Ethereum ETF space, including VanEck, Ark 21Shares, Grayscale Investments, Invesco Galaxy, and Fidelity Investments, have varying final decision deadlines ranging from May to August.
