The SEC Delays Decision on BlackRock’s Ethereum ETF Application
The Securities and Exchange Commission (SEC) has postponed its decision on BlackRock’s application to launch a spot Ethereum (ETH) exchange-traded fund (ETF) until March. The original deadline for the decision was January 25, 2024, but the SEC cited insufficient time to review all the details as the reason for the delay.
Delays Expected for Ethereum Spot ETF Offerings
Bloomberg Intelligence ETF analyst James Seyffart believes that delays in launching Ethereum spot ETFs will likely continue. This follows a similar postponement of the decision on Fidelity’s application to launch a spot Ethereum-ETF, which now also has a new deadline in March.
Companies File Papers for Ethereum-Based Spot Funds
Various companies, including BlackRock, have submitted applications to open Ethereum-based spot funds. BlackRock CEO Larry Fink has expressed support for this product category. However, JPMorgan Chase predicts that the SEC will not approve these types of funds in spring 2024 due to concerns about the uncertain status of Ethereum.
Expectations for Approval by End of Summer 2024
The media anticipates that the SEC will approve the launch of spot Ethereum ETFs by the end of summer 2024. However, there may be complications due to Ethereum’s “opaque” status. While some sources believe that the Commodity Futures Trading Commission already considers Ethereum as a commodity, others are skeptical about its classification.
Hot Take: Delays Persist for Ethereum Spot ETFs
The SEC’s decision to delay BlackRock’s Ethereum ETF application highlights the ongoing challenges faced by companies seeking to launch spot ETFs based on Ethereum. With delays also affecting Fidelity’s application, it is clear that the SEC needs more time to review these proposals. While there is optimism for approval by the end of summer 2024, concerns about Ethereum’s uncertain status and its classification as a commodity may complicate the process. It remains to be seen how these developments will shape the future of Ethereum-based spot funds.
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