SEC Delays Decision on BlackRock's Proposed Ether ETF, Further Reviews Awaited
Summary:
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the proposed Ether (ETH) exchange-traded fund (ETF) by BlackRock, citing a need for more time to review the rule changes. This marks the first in a series of potential postponements over a 240-day review period. Final decisions for numerous Ether ETF applications, including those from VanEck, Ark 21Shares, Grayscale Investments, Invesco Galaxy, and Fidelity Investments, are expected by mid-2024, with analysts predicting the possibility of further intermittent delays.
The decision by the U.S. regulatory authority for financial securities on the proposed Ether (ETH) exchange-traded fund (ETF) by BlackRock has been postponed. The U.S. Securities and Exchange Commission (SEC) has declared they require additional time to scrutinize the proposed modifications to the rule. This announcement was made by Sherry R. Haywood, the Assistant Secretary of the SEC, through a document release on January 24. The delay comes just before the January 25 deadline, marking the first in a series of potential deferments the SEC can impose during a 240-day window.
Nasdaq submitted the iShares Ethereum Trust application, on behalf of Blackrock, approximately 45 days prior to the first deadline, on December 11. While the final decision on BlackRock’s Ether ETF must be rendered by the SEC by August 7, Eric Balchunas, an ETF analyst at Bloomberg, anticipates that the conclusive decisions on all existing spot Ether ETFs will occur in May. This parallels how the SEC issued a verdict on ten pending spot Bitcoin ETFs on January 10.
The deadline for a final decision on the Ether ETF requests from VanEck and Ark 21Shares falls on May 23 and May 24, in that order. Meanwhile, Grayscale Investments, Invesco Galaxy, and Fidelity Investments face June 18, July 5, and August 3 as their respective final deadlines.
According to James Seyffart, another Bloomberg ETF analyst, May 23 will be the next significant date, with the expectation that additional deferments on Ether ETF will occur intermittently over the forthcoming months.
Earlier in January, Balchunas assessed the likelihood of an approval for spot Ether ETF at 70% by May. On the other hand, SEC Commissioner Hester "Crypto Mom" Peirce reassured applicants that legal action wouldn't be necessary to persuade the SEC's approval of the spot Ether ETFs. She stated, “We shouldn’t need a court to say our approach is 'arbitrary and capricious' for us to correct it."
However, some experts within the industry hold a more pessimistic outlook. CEO of Morgan Creek Capital, Mark Yusko, estimates less than half chance of approval for a spot Ether ETF, arguing that the SEC continues to harbor an adverse attitude toward cryptocurrency.
Published At
1/25/2024 1:48:44 AM
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