SEC Extends Decision Timeline on BlackRock’s Ethereum ETF, New Verdict Expected in March

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In a recent filing, the Securities and Exchange Commission (SEC) announced an extension to the decision timeline for BlackRock’s proposal for a spot Ethereum exchange-traded fund (ETF). The regulatory body cited the need for additional time to thoroughly assess the proposed rule change and associated concerns.

The updated timeline now establishes a deadline of March 10 for the SEC to either approve, disapprove, or initiate further proceedings regarding BlackRock’s innovative investment vehicle, known as the iShares Ethereum Trust. This extension follows BlackRock’s application for the spot Ethereum ETF in November, seeking regulatory approval.

After Bitcoin, Its Ether

Nasdaq, on behalf of BlackRock, applied to the iShares Ethereum Trust on December 11, 2023, making BlackRock, with over $9.1 trillion in assets under management, the largest asset management firm. This delay in the SEC’s decision is the first of several possible extensions within a 240-day window.

Among other contenders seeking approval for spot Ether ETFs are VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex, each with specific deadlines ranging from May to July.

Following the SEC’s recent approval of 11 spot Bitcoin ETFs, companies, including BlackRock, sought similar approval for Ethereum ETFs. BlackRock’s Bitcoin ETF witnessed significant inflows within two weeks, overshadowing the Grayscale Bitcoin Trust, which saw outflows after its conversion from a closed fund.

JPMorgan’s Insight on Ethereum’s ETF

JPMorgan’s analysis points to Ethereum’s shift from proof-of-work to proof-of-stake in 2022, impacting decentralization and aligning Ether more closely with altcoins beyond Bitcoin. Recognizing previous SEC classifications of some altcoins as securities, JPMorgan estimates the likelihood of the SEC approving the Ethereum ETF by May to be no more than 50%.

As the cryptocurrency landscape undergoes dynamic changes, the SEC’s decision on BlackRock’s Ethereum ETF holds significant implications for the broader market and investor sentiment.