- The SEC has delayed its decision on whether to approve BlackRock’s spot Ethereum ETF until March 10, 2024, pointing to overall SEC hesitancy around cryptocurrency ETFs.
- This comes after the SEC approved several spot Bitcoin ETFs in January 2024, but now appears to be reverting to a more cautious approach with Ethereum.
- The SEC previously delayed spot Bitcoin ETF applications before approving them, so the Ethereum ETF delay may not necessarily mean rejection down the line.
The Securities and Exchange Commission (SEC) has delayed its decision on whether to approve BlackRock‘s spot Ethereum exchange-traded fund (ETF). This comes after the SEC approved several spot Bitcoin ETFs in early January.
Background
In January 2024, the SEC approved the first spot Bitcoin ETFs, including one from BlackRock. This was a landmark moment, as it allowed mainstream investors to gain direct exposure to Bitcoin through their normal brokerage accounts for the first time.
BlackRock and others hoped the SEC would quickly follow up by approving spot Ethereum ETFs as well. However, the SEC has been slow to make a decision.
SEC Filing
According to a new SEC filing, the commission believes “it is appropriate to delegate 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.”
The SEC has set a new deadline of March 10, 2024 to make a decision on BlackRock’s Ethereum ETF application.
Recently, the SEC also delayed making a decision on Fidelity’s spot Ethereum ETF application.
Implications
The SEC has repeatedly delayed decisions on spot Bitcoin ETF applications in the past before finally approving them. This points to an overall hesitancy by the SEC when it comes to cryptocurrency ETFs.
SEC Chair Gary Gensler has implied the SEC felt pressure to approve the spot Bitcoin ETFs. With Ethereum, the SEC now appears to be reverting to its typical cautious approach.
Other asset managers have also applied for spot Ethereum ETFs. The SEC is likely to delay those decisions as well.
Conclusion
While the crypto community is eager for a spot Ethereum ETF, the SEC remains hesitant. It’s unclear if or when the SEC may ultimately approve a spot Ethereum ETF from any provider, including BlackRock. The March 10 deadline gives the SEC more time to evaluate the proposed Ethereum ETF rule change.
