In a move that will disappoint supporters of Ethereum ETFs, the US Securities and Exchange Commission (SEC) has deferred its decision on BlackRock’s proposed spot Ethereum ETF until March. This development pushes back the timeline for potential approval, leaving the industry in limbo for another two months.
Additional Review Time
BlackRock, the world’s largest asset manager, submitted its application for a spot Ethereum ETF in November 15, 2023. The SEC initially faced a January 26 deadline to rule on the proposal, but this date has now been shifted to March 10. This delay gives the SEC additional time to review the application and consider feedback from the public and industry stakeholders.
A Precedent for Ethereum ETF Application
The postponed decision casts a shadow of uncertainty over the future of Ethereum ETFs in the US. Some analysts view the delay as a setback, while others remain optimistic about eventual approval. The next key date to watch is May 23, according to Bloomberg analyst James Seyffart, as this marks the deadline for the SEC to act on all pending ETF applications received before January 2024.
Investors and industry players eagerly await the SEC’s final decision on BlackRock’s proposal, which could set a precedent for other Ethereum ETF applications. Continued regulatory scrutiny and potential hurdles remain concerns for those hoping for a swift launch of US-based Ethereum ETFs. Despite the delay, the growing interest in Ethereum and the increasing demand for diversification within the ETF market suggest that Ethereum ETFs could eventually gain regulatory approval in the US.