BlackRock’s Ethereum Trust ETF faces another delay from SEC


  • The SEC has delayed its decision on BlackRock’s Ether ETF proposal, marking a second postponement.
  • Other Ether ETF applicants, including Ark 21Shares and Franklin Templeton, have amended their proposals to include staking language.
  • Analysts anticipate a crucial decision by the SEC on Ether ETFs by May 23, following a 240-day evaluation period.

The Securities and Exchange Commission (SEC) has deferred its decision on the Ether ETF proposal submitted by BlackRock, marking another postponement in the cryptocurrency ETF space. 

This delay follows a similar action taken in January when the SEC decided to hold off on BlackRock’s application after approving a series of Bitcoin ETFs. The development aligns with expectations from industry analysts, suggesting a cautious regulatory approach towards Ether-based financial products.

BlackRock, the world’s largest asset manager, had initially filed for the iShares Ethereum Trust in November, signaling a growing interest in offering traditional investors exposure to Ethereum through regulated channels. Despite the anticipation for a positive outcome, the SEC’s decision has been pushed back, with analysts pointing to May as a critical period for potential approval.

Industry responses and adjustments

The delay has prompted other entities to revise their ETF proposals, incorporating specific language related to staking, indicating an effort to align with regulatory expectations. Notably, Ark 21Shares and Franklin Templeton have made amendments to their filings, reflecting a proactive stance toward regulatory compliance and the nuances of cryptocurrency investments.

Bloomberg ETF analyst James Seyffart has highlighted May 23 as a pivotal date for the SEC’s decision-making process, relating to the 240-day window the regulatory body has to evaluate proposals from VanEck and Ark 21Shares. Seyffart, in previous statements, estimated a 60% chance of approval by this deadline, underscoring the critical nature of the upcoming period for Ether ETF applicants.

The SEC has also postponed its decision on Fidelity’s Ether ETF proposal, further illustrating the regulatory hesitancy surrounding spot Ethereum ETFs. Despite the availability of futures-based Ethereum ETF products in the U.S. market, the focus remains on the approval of spot ETFs, which are expected to attract more interest from investors seeking direct exposure to Ethereum.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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