SEC Delays Decision on BlackRock’s Spot Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) has announced that it is delaying its decision on BlackRock’s spot Ethereum exchange-traded fund (ETF) application until March. The new deadline for the decision is set to be March 10, 2024. The SEC will then either approve, disapprove, or institute proceedings to determine whether the proposed rule change should be disapproved.
The SEC stated that it needs more time to consider the proposed rule change and the issues raised therein, which is why it has designated a longer period for its decision-making process.
Expect More Delays in Spot Ethereum ETF Decision
In response to the announcement of the postponement, Bloomberg Intelligence ETF analyst James Seyffart commented that these delays were anticipated. He stated that spot Ethereum ETF delays will continue to happen sporadically over the next few months, with May 23 being the next date of importance.
Fidelity’s spot Ethereum ETF application was also postponed by the SEC, with a new decision deadline of March 5.
Goldman Sachs Optimistic About Ethereum ETF Approval
Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, expressed optimism about the potential approval of spot Ethereum ETFs in the coming months. He highlighted that whether it is perceived as a security or not will be a critical factor in determining approval. McDermott also emphasized the cost-effectiveness of investing in Bitcoin through these ETFs compared to direct crypto investment.
Hot Take: SEC Takes More Time for Deliberation
The SEC’s decision to delay its ruling on BlackRock’s spot Ethereum ETF is not surprising given previous delays and the need for careful consideration of the proposed rule change. This decision has implications not only for BlackRock but also for the broader market and investors interested in Ethereum ETFs. While delays can be frustrating, they also indicate that regulators are taking their time to thoroughly evaluate the potential risks and benefits of these investment products. As the SEC continues its deliberation, the crypto community eagerly awaits a final decision on spot Ethereum ETFs.
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