SEC Postpones Decision on BlackRock's Spot Ethereum ETF

By: Eva Baxter

The U.S. Securities and Exchange Commission (SEC) has extended the review period for BlackRock's proposed spot Ethereum ETF. The notice, issued on Jan. 24, extends the decision period to Mar. 10, 2024.

Interestingly, the SEC received no comments about BlackRock's Ethereum ETF proposal, unlike its spot Bitcoin ETF proposal which garnered about 15 comments within two months of filing. Despite this, the delay doesn't indicate an impact on other Ethereum ETF proceedings, and a decision is still expected around May 23, coinciding with the deadline for VanEck’s spot Ethereum ETF.

However, internal resistance within the SEC and varying predictions about the likelihood of approval create some degree of uncertainty. Various predictions suggest a 54-70% chance of ETF approval by end of May. Analysts expect approval delays to happen sporadically over the next few months until the definitive decision date.

In addition, the SEC has also delayed proceedings around Fidelity's spot Ethereum ETF this month. Despite the delay, the SEC is still required to make a decision by May 23 regarding these funds, yet it's unclear whether approval is in sight.