SEC Postpones Decision on BlackRock’s Spot Ethereum ETF
The Securities and Exchange Commission (SEC) has delayed its ruling on BlackRock’s application for a spot Ethereum exchange-traded fund (ETF) until March. BlackRock, the largest fund manager globally, submitted its request in November.
SEC Extends Timeframe for Assessment
According to a filing on the SEC website, the decision on BlackRock’s spot Ethereum ETF has been deferred to March 10, 2024. The SEC stated that it needs more time to thoroughly evaluate the proposal and address any concerns.
Larry Fink Supports an Ethereum ETF
In a CNBC interview, BlackRock’s CEO Larry Fink expressed his perspective on the value of an Ethereum ETF. He emphasized that approving such funds is a significant step toward tokenization.
Spot Ethereum ETF Approvals Face Further Delays
The SEC recently postponed its decision on Fidelity’s application for a spot Ethereum ETF, setting a new deadline for March. Various companies, including Ark Invest, Grayscale, and BlackRock, have applied for Ethereum-based spot funds.
Potential Regulatory Complexities and Skepticism
JPMorgan Chase is skeptical about the SEC approving spot Ethereum ETFs due to uncertainties surrounding Ethereum’s status. Bloomberg Intelligence ETF analyst James Seyffart anticipates ongoing delays and regulatory complexities involving not only industry players but also the Commodity Futures Trading Commission (CFTC).
Hot Take: Spot Ethereum ETF Approvals May Take Longer Than Expected
While media outlets anticipate approving spot Ethereum ETFs by the end of summer 2024, there are potential obstacles that could further delay these approvals. The regulatory complexities surrounding Ethereum’s status and the involvement of the CFTC may pose challenges that outweigh the benefits. However, some believe that Ethereum is already categorized as a commodity by the CFTC, which could facilitate the approval process.
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