The U.S. Securities and Exchange Commission [SEC] has extended the timeline for deciding on BlackRock’s proposed spot Ethereum Exchange-Traded Fund until March, with a final decision deadline that might extend to August 7, 2024. This postponement, outlined in a filing by SEC Assistant Secretary Sherry Haywood on January 24, aims to provide the commission with ample time to thoroughly evaluate the proposed rule change and address associated concerns.
Bloomberg analyst James Seyffart identifies May 23 as a crucial date to monitor the delays surrounding spot ETH ETFs. Seyffart notes that these delays, impacting the near-term catalyst for Ethereum’s price and mainstream investment, could persist sporadically over the coming months. In response to the news, the price of the premier altcoin has experienced a decline of over 12% in the past week, settling at $2211.
The repercussions of this delay extend beyond BlackRock, potentially influencing other spot Ethereum ETF applications scheduled for consideration from May 23 to August 3, 2024. Earlier, the SEC deferred decisions on the Hashdex Nasdaq Ethereum ETF and the Grayscale Ethereum Futures ETF, suggesting a broader impact on the industry.
Analyst Seyffart previously shared insights on November 15, suggesting that the SEC’s approval of Grayscale’s Ethereum futures ETF could impact the decision on its spot ETH ETF application. Conversely, a denial might lead Grayscale to argue that the SEC is treating Bitcoin and Ether futures ETFs differently under the Securities Act of 1933.
SEC’s Public Input Collection Adds to Ethereum ETF Delay
The SEC’s move to gather additional public input on the listing of these ETFs, as outlined in the filing, further contributes to the delay. The decisions on other spot ETH ETFs, including those proposed by VanEck, Cathie Wood’s ARK Invest, and 21Shares, have also been deferred.
Despite these setbacks, some analysts remain optimistic, speculating that the regulator could potentially approve spot cryptocurrency ETFs in May, especially after approving several futures-based Bitcoin ETFs in January. The situation remains dynamic, with market participants closely watching regulatory developments for potential shifts in the approval landscape for cryptocurrency-related financial products.