The United States Securities and Exchange Commission has delayed its decision on BlackRock’s spot Ethereum ETF to March.
The commission also delayed Fidelity’s application for a Fidelity Ethereum fund.
SEC Delays Decision
The decision was announced in a filing made on Wednesday. In the filing, the SEC stated that it finds it appropriate to designate a longer period to decide the course of action on the proposed rule change.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
The decision means the Securities and Exchange Commission has until the 10th of March to approve, disapprove, or initiate additional proceedings on the proposed ETF. BlackRock had filed for a spot Ethereum ETF, the iShares Ethereum Trust, in November 2023. If approved, the Ethereum ETF would give investors exposure to the world’s second-largest cryptocurrency by market capitalization.
BlackRock CEO Larry Fink stated in an interview that he sees considerable value in having an Ethereum ETF and added that the approval of such funds is a stepping stone toward tokenization. BlackRock’s iShares Bitcoin Trust is the most successful of the 11 spot Bitcoin ETFs currently trading, with $1.7 billion in assets under management.
Fidelity Ethereum Fund Also Delayed
Meanwhile, Fidelity’s application for a spot Ethereum ETF, the Fidelity Ethereum Fund, was also delayed, according to a filing made last week. The filing stated,
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
Bloomberg ETF analyst James Seyffart was not surprised by the developments, stating that such delays for spot Ethereum ETF proposals would continue.
“Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. The next date that matters is the 23rd of May.”
Divergent Views On Spot Ether ETF
Market watchers have been optimistic and pessimistic regarding the approval of a spot Ethereum ETF. Many believe approval from the Securities and Exchange Commission can come as early as May following the approval of spot Bitcoin ETFs. However, SEC Chair Gary Gensler’s position on similar ETFs may have dampened hopes.
“As I said two weeks ago, that which we did with regard to bitcoin exchange traded products is cabined to this one commodity non-security and shouldn’t be read to be anything other than that.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
