The proposal for an Ether ETF submitted by BlackRock has been delayed by the Securities and Exchange Commission (SEC), indicating a cautious approach to regulating cryptocurrency ETFs. This is the second time the SEC has postponed a decision on BlackRock’s application, following the approval of several Bitcoin ETFs in January. BlackRock, the world’s largest asset manager, initially filed for the iShares Ethereum Trust in November, showing a growing interest in providing traditional investors with regulated access to Ethereum. Despite expectations for a positive outcome, the SEC’s decision has been pushed back, with analysts pointing to May as a crucial period for potential approval.
In response to the delay, other entities have amended their ETF proposals to align with regulatory expectations, specifically incorporating language related to staking. Ark 21Shares and Franklin Templeton have made these adjustments, demonstrating a proactive approach to regulatory compliance and the complexities of cryptocurrency investments.
Bloomberg ETF analyst James Seyffart has identified May 23 as a significant date for the SEC’s decision-making process. This date relates to the 240-day window within which the regulatory body must evaluate proposals from VanEck and Ark 21Shares. Seyffart previously estimated a 60% chance of approval by this deadline, underscoring the importance of the upcoming period for Ether ETF applicants.
Furthermore, the SEC has also postponed its decision on Fidelity’s Ether ETF proposal, further highlighting 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 approving spot ETFs, which are expected to attract more interest from investors seeking direct exposure to Ethereum.
