Ethereum Spot ETF: US SEC Pushes Decision For BlackRock Proposal To March

This decision follows a similar move on January 19 this year, where the SEC postponed its decision on Fidelity's application for a spot Ethereum-ETF, with a new deadline also set for March.

In a recent development, the Securities and Exchange Commission (SEC) has opted to extend the timeframe for its decision regarding BlackRock's application for the introduction of a spot Ethereum (ETH) ETF. The decision, initially scheduled for January 25, has been postponed, with the new deadline set for March 10, 2024. The SEC clarified that the extension was necessary to allow ample time for a thorough review of the application details.

The regulatory body expressed its stance in a filing on its official website, stating, "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."

Highlighting a broader trend, Bloomberg Intelligence ETF analyst James Seyffart suggested that delays in Ethereum spot ETF approvals are likely to persist.

This decision follows a similar move on January 19 this year, where the SEC postponed its decision on Fidelity's application for a spot Ethereum-ETF, with a new deadline also set for March.

Notably, various companies, including BlackRock, have submitted applications to establish Ethereum-based spot funds. BlackRock's CEO, Larry Fink, has expressed support for this new product category. However, JPMorgan Chase has cast doubt on the SEC's approval of such funds, particularly in the spring of 2024, citing uncertainties surrounding Ethereum's status.

Despite the mixed sentiments among crypto experts regarding the approval of a spot ether ETF, some anticipate a potential green light from the SEC, possibly as early as May. This optimism is fueled by the recent approval of spot Bitcoin ETFs. However, SEC Chair Gary Gensler tempered expectations during a media briefing, emphasising that the regulatory approach taken with Bitcoin exchange-traded products should not be extrapolated to other crypto-linked products.

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