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Updated January 25th, 2024 at 14:51 IST

SEC postpones decision on spot Ether ETF

This delay made a day prior to the January 25 deadline, marks the first of several possible delays the SEC can employ over a 240-day period.

Reported by: Business Desk
Gary Gensler
Gary Gensler | Image:X/Twitter
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Spot Ether ETF: The US Securities and Exchange Commission (SEC) has deferred its decision on BlackRock's proposed spot Ether (ETH) exchange-traded fund (ETF), just a day before the initial deadline. The SEC, citing the necessity for additional review time, stated in a filing on January 24 that it deems it appropriate to extend the period for action on the proposed rule change.

This delay made a day prior to the January 25 deadline, marks the first of several possible delays the SEC can employ over a 240-day period. The deadline follows Nasdaq's filing for an iShares Ethereum Trust, on behalf of BlackRock, on December 11.

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Although the SEC is mandated to make a final decision on BlackRock's spot Ether ETF by August 7, ETF analyst Eric Balchunas predicts a collective decision on all pending spot Ether ETFs in May, similar to the SEC's determination on 10 spot Bitcoin ETFs on January 10.

VanEck and Ark 21Shares have final decision deadlines of May 23 and May 24 for their Ether ETF applications, while Grayscale Investments, Invesco Galaxy, and Fidelity Investments face deadlines on June 18, July 5, and August 3, respectively.

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ETF analyst James Seyffart highlighted May 23 as a significant date and anticipates intermittent delays for spot Ether ETFs in the coming months. Earlier in the month, Balchunas estimated a 70 per cent chance of approval for a spot Ether ETF by May. SEC Commissioner Hester "Crypto Mom" Peirce assured applicants that a court battle wouldn't be necessary for the SEC to approve spot Ether ETFs, underlining the importance of getting the approach right without legal intervention.

However, according to market reports, Morgan Creek Capital CEO Mark Yusko is less optimistic, predicting a less than 50 per cent chance of an approved spot Ether ETF and underlining what he perceives as the SEC's continued hostility toward the cryptocurrency industry.

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Published January 25th, 2024 at 13:09 IST

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