BlackRock Ethereum ETF Joins the Wait as SEC Delays Decision

• The SEC has delayed its decision timeline for BlackRock’s Ethereum ETF proposal.
• The commission previously delayed Fidelity Investment’s proposal.
• Investor optimism is fueled by the growing support for Ethereum from industry giants.

The cryptocurrency market has been abuzz with anticipation as the Securities and Exchange Commission (SEC) continues its evaluation of over six Ethereum Exchange-Traded Fund (ETF) proposals. Issuers include investment management giants BlackRock , Ark Invest, Fidelity, and VanEck, hoping the commission will follow the precedent it set with Bitcoin ETFs.

Yet, the SEC appears to be proceeding cautiously, consistently extending its decision deadlines. Following its pushback on Fidelity’s application just a week ago, the SEC has extended the same fate to the next hopeful contender.

SEC Delays BlackRock Ethereum ETF

On Wednesday, January 24, SEC Assistant Secretary Sherry Haywood announced the commission’s decision to postpone BlackRock’s Ethereum ETF application deadline.

The proposal, filed on November 21, 2023, requests approval to list and trade BlackRock’s iShares Ethereum Trust on the Nasdaq stock market.

A 45-day timeframe has extended BlackRock’s Ethereum ETF deadline. The newly-scheduled date is March 10, 2024, by which the commission will either approve, reject, or institute additional proceedings to assess the proposal.

Commenting on the delay, ETF Analyst James Seyffart asserted that the delays on ETF proposals will likely continue over the next months.

The speculation hinges on May 23, 2024, as the plausible date for the commission to roll out its verdict. Despite the speculation, the SEC has until August 7, 2024, to reach a final verdict on BlackRock’s application.

The SEC’s decision to delay the approval process has increased the growing anticipation for the regulator’s stance on spot Ethereum ETFs.

Experts Bet on Ethereum ETF

Despite predictions that Ethereum ETF delays are expected to continue, the open support by investors has charted an optimistic course for the potential approval of the financial instrument.

BlackRock CEO Larry Fink’s bullish endorsement of Ethereum as a “store” of value has significantly boosted investor confidence in the asset’s potential. Fellow spot Bitcoin ETF provider Valkyrie Investments has expressed interest in the Ethereum ecosystem, further solidifying the asset’s hype. 

The Ethereum ETF anticipation is not fueled by market sentiment alone, however. In a recent interview, SEC Commissioner Hester Peirce voiced optimism about a balanced decision-making process for all proposals, which will adopt an “investor-liberty” approach.

Other industry predictions affirm that the SEC will likely grant simultaneous approvals in May, similar to its approach with Bitcoin ETFs.

On the Flipside

• Ethereum experienced a significant price boost upon the approval of Bitcoin ETFs.
• Before approving Bitcoin ETFs, the SEC expressed concerns about potential market manipulation, which may influence its current evaluation of Ethereum ETFs.
• The approval of Ethereum ETFs will signal improved regulatory standards within the United States.

Why This Matters

The SEC clarified that approving Bitcoin ETFs is not the endorsement of crypto assets, and the commission’s decision to extend the evaluation period of proposals reflects its commitment to thorough consideration. While the unpredictable nature of the SEC makes predicting a verdict challenging, the final decision on Ethereum ETFs could be influenced by its current regulatory stance.

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Strong Ethereum Fundamentals Fuel 20%+ Surge Against Bitcoin   

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