BlackRock Spot Ethereum ETF Is Now Delayed By SEC To Extend Approval Period

Key Points:

• The SEC has delayed its decision on the BlackRock spot Ethereum ETF, extending the timeline for approval.
• The delay follows previous postponements in January, coinciding with the approval of Bitcoin ETFs.

The Securities and Exchange Commission (SEC) has extended its decision timeline on the BlackRock spot Ethereum ETF, according to a filing made on Monday.

SEC Extends Decision Timeline for BlackRock Spot Ethereum ETF Proposal

BlackRock submitted its application for the iShares Ethereum Trust in November last year, aiming for a Nasdaq listing if approved. Ether, the second-largest cryptocurrency by market capitalization, would be the focal point of this ETF.

This BlackRock spot Ethereum ETF delay follows the SEC’s previous postponement in January, which coincided with the approval of several Bitcoin ETFs. A spot crypto ETF, such as the one proposed by BlackRock, mirrors the market price of the underlying digital asset, providing investors with exposure without requiring direct ownership of the currency.

In separate filings on March 4, the SEC revealed delays in decisions on applications from both BlackRock and Fidelity for their respective Ethereum-related funds. The SEC initially postponed its decision on these ETFs in January, alongside the approval of spot Bitcoin ETFs, with the possibility of delaying the decision up to three times before reaching a final verdict.

Market Anticipation Grows Amidst SEC’s Caution on Crypto ETFs

Market analysts and commentators anticipate the SEC’s final decision may come as late as May 23, a deadline set for VanEck’s spot ETH ETF application. Bloomberg ETF analyst James Seyffart emphasized this date as critical for Ethereum ETFs.

Interest in spot Ethereum ETFs is intensifying amid Bitcoin’s surge towards an all-time high, driven by the success of spot Bitcoin ETFs that attracted significant inflows. Ethereum, having recently reached its highest price in over a year, is sparking anticipation for similar ETF opportunities, especially with the upcoming Dencun upgrade for the Ethereum network seen as a bullish signal.

Despite ongoing delays, market demand for Ethereum-based ETFs remains robust, fueled by the cryptocurrency’s performance and potential.