SEC Postpones BlackRock Ethereum ETF Decision

The U.S. Securities and Exchange Commission (SEC) has once again postponed a key decision, this time regarding BlackRock’s proposal to introduce spot Ethereum (ETH) Exchange-Traded Fund (ETF). Initially expected to be resolved by January 25, 2024, the SEC has extended the deadline to March 10, 2024, citing the need for additional time to thoroughly review the application’s details.

This delay was communicated through an official statement on the SEC’s website. The SEC emphasized the importance of taking the necessary time to fully understand and consider the proposed rule change and its implications. They stated, “The Commission finds it appropriate to designate 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 and the issues raised therein.”

This announcement follows a similar postponement by the SEC regarding Fidelity’s application to launch its own spot Ethereum-ETF. Like BlackRock’s application, the decision on Fidelity’s offering has been delayed until March.

The interest in Ethereum-based spot funds has been growing, with several notable firms, including BlackRock, actively pursuing the launch of such products. BlackRock CEO Larry Fink has expressed his support for this new category of investment products.

However, the path to approval seems uncertain. JPMorgan Chase, for instance, has voiced skepticism about the SEC’s likelihood of approving these funds in the near future. Among their concerns is the ambiguous regulatory status of Ethereum, which could be a significant factor in the SEC’s decision-making process.

Developments are being closely watched by investors and the cryptocurrency community, as it could have significant implications for the future of Ethereum-based investment products and the broader digital asset market.