FameEX Hot Topics | SEC Delays Verdict on BlackRock’s Proposed Spot Ethereum ETF to March

The U.S. Securities and Exchange Commission (SEC) has extended its timeline for a decision on BlackRock’s spot Ether (ETH) exchange-traded fund (ETF). This delay, announced just a day before the initial deadline, indicates the SEC's need for more time to consider the rule change proposed by BlackRock.

In a statement on January 24, SEC assistant secretary Sherry Haywood noted, “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change.” This postponement came just before the January 25 deadline, marking the first in a potential series of delays within a total 240-day period allowed by the SEC. The timing of this delay is notable, occurring nearly 45 days after Nasdaq submitted a filing for an iShares Ethereum Trust on behalf of BlackRock on December 11.

The SEC is now expected to reach a final decision on this matter by August 7. Bloomberg ETF analyst Eric Balchunas anticipates a comprehensive decision on all pending spot Ether ETFs by May, reflecting the SEC's approach with ten similar cases. James Seyffart, another Bloomberg ETF analyst, emphasized the significance of May 23 as the next crucial date. He expects additional intermittent delays for spot Ether ETFs in the coming months. Earlier, Balchunas assessed a 70% likelihood of approval for a spot Ether ETF by May.

SEC Commissioner Hester “Crypto Mom” Peirce has reassured stakeholders that legal intervention should not be necessary for the SEC's approval of spot Ether ETFs. She commented, “We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right.”

Despite these developments, some industry experts remain skeptical. Mark Yusko, CEO of Morgan Creek Capital, estimates the chances of an approved spot Ether ETF at less than 50%. He argues that the SEC continues to exhibit a general hostility towards the cryptocurrency industry.

This ongoing scenario underscores the complexities of regulatory approval processes in the evolving cryptocurrency market. It highlights the delicate balance regulatory bodies must strike between innovation and compliance, and the divergent opinions among market analysts regarding the future of cryptocurrency products within the regulated financial system.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.