The U.S. Securities and Exchange Commission (SEC) has opted to prolong the wait on announcing its verdict regarding BlackRock’s application for a spot Ethereum exchange-traded fund (ETF). The decision, disclosed in a filing on January 24 by SEC Assistant Secretary Sherry Haywood, cites the necessity for an extended evaluation period for the proposed rule change.
BlackRock’s request to trade its iShares Ethereum Trust under the Nasdaq Rule 5711(d) as a commodity-based trust was submitted to the Federal Register on December 11. Notably, the SEC has not yet received any comments on this proposal.
The SEC has delayed its decision on BlackRock's spot Ethereum ETF application, extending the deadline by 45 days.
The new decision date is now set for March. #Bitcoin #BitcoinETF #EthereumETF #Crypto pic.twitter.com/rNMM2oR7IG
— Bitinning (@bitinning) January 25, 2024
While the delay is not surprising to industry observers familiar with the SEC’s tendency to extend deadlines for similar applications, optimism has been circulating since the recent approval of 11 spot Bitcoin ETFs. The anticipation for a potential Ethereum ETF fueled a market rally, with the digital asset showcasing a remarkable 20% gain against Bitcoin, marking its most robust performance since the close of 2022.
Despite this optimism, SEC Chairman Gary Gensler’s statements in a recent media briefing dampened expectations for a spot Ethereum ETF. Gensler emphasized the SEC’s focus on bitcoin exchange-traded products as limited to the specific commodity, cautioning against broad interpretations.
As March approaches, the crypto community awaits the SEC’s final decision on spot Ethereum ETF applications, navigating a landscape influenced by regulatory scrutiny and market dynamics.
