- SEC delays verdict on BlackRock’s spot Ethereum ETF application until March 10.
- SEC’s pattern of postponing crypto ETFs continues, with Fidelity’s decision expected by March 5.
- Hester Peirce suggests using traditional ETF standards for cryptocurrency ETF approvals.
The launch of spot Ethereum exchange-traded funds (ETFs) is being prolonged because the Securities and Exchange Commission (SEC) has postponed its verdict on BlackRock’s application. Consequently, this defers the opportunity for broader investor exposure to the second most valuable cryptocurrency globally.
In a recent document, the SEC mentioned that it requires “adequate time for review” of the proposal and its related matters, thereby postponing the verdict deadline until March 10. This postponement comes after a comparable extension concerning the Fidelity Spot Ethereum ETF application, for which a verdict is now anticipated by March 5.
Significantly, the SEC’s resistance mirrors the typical sequence observed with spot Bitcoin ETFs, which encountered prolonged postponements before ultimately making headway in January.
Experts, such as James Seyffart from Bloomberg, anticipated this development. Referring to past trends, he forecasts intermittent postponements until the end of May, with a conclusive response expected on May 23.
It’s well-known that the SEC harbors doubts about cryptocurrency. The comments made previously by Chairman Gary Gensler suggest a hesitancy, which gives the impression that the approval of the Bitcoin ETF was somewhat compelled. Nevertheless, there remains a positive outlook regarding Ethereum.
Hester Peirce, a SEC Commissioner who is favorable towards cryptocurrencies, indicates that Ethereum-based spot ETFs could receive approval without the need for judicial involvement. She recommends utilizing the established standards for traditional ETFs for cryptocurrency ETFs, which may simplify the approval process.
As attention is focused on Ethereum
In the interim, Eleanor Terrett of Fox Business has reported that issuers and investors are currently observing the SEC staff for indications of their readiness to interact with the Ethereum ETF proposals, similar to their participation with the spot Bitcoin ETFs.
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