Key Takeaways
- The SEC has delayed its decision on BlackRock’s Ether ETF, citing the need for more time.
- A final decision on the ETF is expected by August 7th, with analysts predicting a May resolution for all pending Ether ETFs.
- Opinions on the SEC’s position on cryptocurrency ETFs vary, with some industry figures optimistic and others skeptical.
The US Securities and Exchange Commission (SEC) has extended the review period for BlackRock's proposed spot Ether (ETH) exchange-traded fund (ETF), moving the decision date just one day before the original deadline.
Sherry Haywood, the SEC's assistant secretary, indicated in a January 24th filing the necessity for additional time to consider the proposed rule change.
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This postponement is the initial step in a series of possible delays the SEC can implement over a 240-day window. This decision arrives almost 45 days following Nasdaq's application for an iShares Ethereum Trust on behalf of BlackRock, filed on December 11th.
The SEC has until August 7th to finalize its decision on the BlackRock Ether ETF.
Analysts closely monitor the situation, with Bloomberg ETF expert Eric Balchunas anticipating a comprehensive decision on all pending spot Ether ETFs by May.
Other Ether ETF applicants like VanEck, Ark 21Shares, Grayscale Investments, Invesco Galaxy, and Fidelity Investments have their final decision deadlines spread across May, June, and August.
James Seyffart, another Bloomberg ETF analyst, highlights the significance of May 23rd, anticipating intermittent delays for spot Ether ETFs in the coming months.
However, opinions on the SEC's stance towards cryptocurrency ETFs vary within the industry. SEC Commissioner Hester Peirce, nicknamed "Crypto Mom," recently assured that a legal battle might not be necessary to approve spot Ether ETFs.
We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right.
In contrast, Morgan Creek Capital CEO Mark Yusko remains skeptical, estimating less than a 50% chance for an approved spot Ether ETF, citing the SEC's perceived antagonism towards the cryptocurrency sector.
While Ethereum ETFs are facing troubles, the SEC has recently approved 10 spot Bitcoin ETFs.
The SEC's delay in deciding on BlackRock's Ether ETF reflects the issue's complexity and the regulator's cautious approach towards cryptocurrency products. As the industry awaits the SEC's final verdict, the outcome could significantly impact the future of cryptocurrency ETFs.
