The US SEC extended its decision timeline on BlackRock’s spot Ethereum ETF proposal to March 10th, allowing more time to evaluate approval, disapproval, or further proceedings.
The SEC, in a filing, stated the need for an extended period to assess the proposed rule change and associated issues, designating additional time for consideration.
BlackRock’s Spot Ethereum ETF Prospects
BlackRock submitted an S-1 application in November for its spot Ethereum ETF, named the iShares Ethereum Trust. This move reflects BlackRock’s intent to broaden access to Ethereum, targeting a more diverse investor base. The success of this initiative holds the potential to reshape the digital asset sector, positioning Ethereum as an appealing investment for those inclined toward traditional investment avenues.
With the recent approval and trading commencement of 11 spot Bitcoin ETFs, the broader cryptocurrency market is now contemplating the possibility and timing of a spot Ethereum ETF. Cryptocurrency experts express varying views, with some optimistic about its emergence, while others exercise caution.
Speculation is rife that SEC approval for a spot Ethereum ETF could potentially occur as early as May, drawing parallels with the recent approval of spot Bitcoin ETFs. Bloomberg Intelligence Senior ETF analyst Eric Balchunas suggests a 70% likelihood of an Ethereum ETF approval in May, while James Seyffart, another Bloomberg Intelligence ETF analyst, foresees ongoing delays, stating, “Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. Next date that matters is May 23rd.”
Notably, various entities, including BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex, are currently seeking approval from the SEC for spot Ethereum ETFs, contributing to the evolving landscape of digital asset investments.
SEC Extends Deadline for Fidelity’s Spot Ethereum ETF
The SEC has extended the decision deadline for the proposal by financial services firm Fidelity for a spot Ethereum ETF to March 5. Fidelity initially submitted its application for the Fidelity Ethereum Fund in November, seeking approval for the investment product.
In its proposal, Fidelity referenced a court ruling from the previous year, highlighting the judiciary’s observation of the SEC’s unclear rationale in rejecting spot cryptocurrency ETFs while approving those based on futures contracts.
SEC Chair Gary Gensler clarified that the agency’s approval of spot Bitcoin exchange-traded products is specific to that cryptocurrency, dispelling assumptions of automatic approval for spot Ethereum ETFs. Despite anticipation, there is no indication of an immediate approval path for these products in the aftermath of the recent decision.
With the SEC extending the decision deadline for the spot Ethereum ETF proposed by Fidelity, alongside the ongoing considerations for various other ETFs, the outlook for spot Ethereum ETFs remains uncertain. The regulatory landscape and market dynamics continue to shape the trajectory of these investment products.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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