The U.S. Securities and Exchange Commission (SEC) has postponed its decision on BlackRock's proposed spot Ethereum (ETH) Exchange-Traded Fund (ETF), a move announced a day prior to the original deadline of January 25. In a January 24 filing, SEC Assistant Secretary Sherry Haywood cited the need for an extended review period for the proposed rule changes. This delay is the first in a series that the SEC can implement within a 240-day timeframe, starting from Nasdaq's December 11 filing for the iShares Ethereum Trust on BlackRock's behalf.
This initial delay comes close to 45 days after the initial filing. The SEC now has until August 7 to reach a final verdict on BlackRock’s spot Ethereum ETF. Bloomberg ETF analyst Eric Balchunas anticipates that a conclusive decision on all pending spot Ethereum ETF applications will likely occur in May. This expectation mirrors the SEC's timeline for deciding on a spot Bitcoin ETF, which was set for January 10th following an October 10th announcement.
The upcoming key dates for other spot Ethereum ETF proposals are quickly approaching. For instance, VanEck and Ark 21Shares have their final decision deadlines on May 23 and May 24, respectively. Meanwhile, three other applicants – Grayscale Investments, Invesco Galaxy, and Fidelity – face their verdicts on July 18, July 5, and August 3, respectively.
Bloomberg ETF analyst James Seyffart remarked on January 24 that the next significant date to watch is May 23. He anticipates sporadic delays in the approval of Ethereum ETF spots over the coming months. SEC Commissioner Hester “Crypto Mom” Peirce has recently reassured applicants, asserting that court intervention should not be necessary for the SEC to greenlight a spot ether ETF. She emphasized the importance of the SEC making the correct decision without being compelled by a court ruling.
Despite Peirce’s assurance, some industry experts remain skeptical about the likelihood of approval. Mark Yusko, CEO of Morgan Creek Capital, estimates that there is less than a 50% chance of a spot ether ETF receiving approval. This skepticism reflects a broader sentiment about the SEC's apparent ongoing wariness towards the cryptocurrency industry.
