SEC Delays BlackRock’s Ethereum ETF Decision, Impacting March Strategies!

Key Points:

• SEC postpones BlackRock’s spot Ethereum ETF decision a day before the Jan. 25 deadline.
• Initial delay marks the first in a series within a 240-day period.

United States Securities and Exchange Commission (SEC) has delayed its decision on BlackRock’s proposed spot Ethereum ETF a day ahead of the initial deadline.

Sherry Haywood, the SEC‘s assistant secretary, cited the necessity for additional time to review the proposed rule change.

This delay, occurring just before the January 25 deadline, marks the first of several possible delays the SEC can utilize within a 240-day period. The initial deadline comes nearly 45 days after Nasdaq filed for an iShares Ethereum Trust on behalf of BlackRock on December 11.

While the SEC must reach a final decision on BlackRock’s spot Ethereum ETF by August 7, Bloomberg ETF analyst Eric Balchunas predicts a collective decision on all pending spot Ethereum ETFs in May, aligning with the SEC’s approach to 10 pending spot Bitcoin ETFs on January 10.

Balchunas Eyes May for Spot Ethereum ETF Collective Decision!

VanEck and Ark 21Shares face final decision deadlines of May 23 and May 24, respectively, while Grayscale Investments, Invesco Galaxy, and Fidelity Investments face deadlines on June 18, July 5, and August 3. Bloomberg ETF analyst James Seyffart anticipates sporadic spot Ether ETF delays until May 23.

Despite the optimism, Morgan Creek Capital CEO Mark Yusko remains cautious, predicting a less than 50% chance of an approved spot Ether ETF. Yusko suggests that the SEC’s stance toward the cryptocurrency industry remains hostile, contrasting with SEC Commissioner Hester Peirce’s assurance that a court battle won’t be necessary for spot Ether ETF approval.

As the regulatory landscape unfolds, industry experts offer divergent views on the likelihood of SEC approval for spot Ether ETFs, creating a dynamic environment for cryptocurrency investors.