In a recent filing, the Securities and Exchange Commission (SEC) has announced an extension of the decision timeline for BlackRock’s proposed spot Ethereum exchange-traded fund (ETF) to March. The regulatory body cited the necessity for additional time to thoroughly assess the proposed rule change and address associated concerns.
The new deadline for the SEC to approve, disapprove, or initiate further proceedings regarding BlackRock’s proposed fund, known as the iShares Ethereum Trust, is set for March 10. This decision comes after BlackRock filed for the spot Ethereum ETF in November, seeking regulatory approval for this innovative investment vehicle.
SEC Chair Gary Gensler emphasized, in a press release following recent Bitcoin ETF approvals, that any decision on Ethereum ETFs should not be perceived as an indication of the Commission’s predisposition to approve listing standards for crypto asset securities.
The SEC’s decision to delay BlackRock’s proposal came one day before the original deadline on January 25, marking the initial phase of several potential delays within 240 days. This original deadline aligns approximately 45 days after Nasdaq filed for the iShares Ethereum Trust on BlackRock’s behalf in mid-December.
The SEC is obligated to make a final decision on BlackRock’s spot in Ethereum ETF by August 7. Ethereum, seen by many as the next likely candidate for a spot ETF approval in the U.S., has gained increased attention from traders, following the enthusiasm surrounding Bitcoin ETF approvals last year.
JPMorgan’s analysis suggests that Ethereum’s transition from a proof-of-work to a proof-of-stake consensus mechanism in 2022, affecting decentralization, aligns Ether more closely with other altcoins outside of Bitcoin. Some altcoins have previously been classified as securities by the SEC. JPMorgan estimates the likelihood of the SEC approving the ETF by May to be no more than 50%.
Various contenders in the Ethereum ETF space, such as VanEck, Ark 21Shares, Grayscale Investments, Invesco Galaxy, and Fidelity Investments, have different final decision deadlines ranging from May to August.
