The SEC postponed BlackRock’s spot Ethereum ETF. A decision is still due in May.
The U.S. Securities and Exchange Commission (SEC) extended the decision period for BlackRock’s planned spot Ethereum ETF to January 24.
The notice concerns a proposed rule change that would allow Nasdaq to list and trade shares of the BlackRock iShares Ethereum Trust.
Previously, the SEC had until January 25, 2024, to approve, deny or file proceedings to approve or deny BlackRock’s proposal. However, securities laws allow the agency to extend the decision period until March 10, 2024.
The SEC noted that Nasdaq initially filed a proposed rule change on November 21, 2023, and that the proposal was published in the Federal Register for comment on December 11, 2023. The publication date determines the deadlines outlined above.
The SEC added that it had not received any comments on BlackRock’s proposed spot Ethereum ETF. In contrast, BlackRock’s spot Bitcoin ETF proposal received about 15 comments within two months of its June 2023 submission.
The SEC is still expected to make a decision in May.
The BlackRock-related delay is not expected to impact the broader Ethereum ETF process. Bloomberg ETF analyst James Seyffart said today:
“Spot Ethereum ETF delays will continue to occur sporadically in the coming months. (The) next important date is May 23.”
May 23rd is relevant because the SEC must approve or reject VanEck’s spot Ethereum ETF by that date without the possibility of further delay. Securities regulators will likely decide on VanEck’s application at that time as well as other similar applications with different deadlines, including BlackRock’s.
The SEC similarly delayed proceedings against Fidelity’s spot Ethereum ETF this month. Again, this does not affect the May decision deadline.
A decision must be made by May 23, but it is unclear whether the SEC will approve the funds. FOX Business’ Eleanor Terrett reported internal resistance from the SEC and suggested some ETF issuers are optimistic.
According to current PolyMarket odds, there is a 54% chance of approval by May 31. Bloomberg ETF analyst Eric Balchunas puts the odds of approval at 70%.
