March 5, 2024

SEC's Decision on BlackRock's Ether ETF Proposal Faces Another Delay

The SEC's postponement shifts attention to a potential decision on ether ETFs in May.

The US Securities and Exchange Commission (SEC) has once again delayed its decision regarding BlackRock's proposal for an ether exchange-traded fund (ETF), extending the uncertainty surrounding the launch of such products.

This delay doesn't come as a surprise to industry analysts. James Seyffart, an ETF analyst at Bloomberg, had previously anticipated that a verdict on whether to approve or defer the launch of spot ether ETFs would likely not materialize until May, at the earliest.

BlackRock's initial ETF proposal faced a delay in January, following the SEC's approval of several bitcoin ETFs. Seyffart had highlighted May 23 as a crucial date to watch for developments, emphasizing its significance as the 240-day window for the SEC to decide on proposals from VanEck and Ark 21Shares.

Speaking earlier, Seyffart had assessed the likelihood of approval at approximately 60% by May, underlining the pivotal role this month could play in shaping the regulatory landscape.

The SEC had previously deferred a decision on Fidelity's proposed ETF, indicating a broader hesitancy towards approving crypto-related financial products.

In response to these delays, other hopefuls seeking to launch spot ETH ETFs have adjusted their proposals. Ark 21Shares, for instance, amended its S-1 filing last month, incorporating language related to staking. Similarly, Franklin Templeton entered the fray in February, including provisions related to staking in its proposal.

These developments underscore the evolving regulatory environment surrounding cryptocurrency-based financial instruments, as issuers navigate the SEC's requirements and seek to address concerns while pursuing their ETF ambitions.

Stay Connected
Join the conversation on 𝕏
Make a Difference
Support our content creators
and help us stay ad-free
BTC: bc1q6nt2u2u539kjgfn5hj8g9f8xk2hnwuudlrlnr9
Cryptocurrency news & learning platform
All Rights Reserved © 2024