The United States Securities and Exchange Commission (SEC) has delayed the decision on the spot Bitcoin ETF application from American multinational asset manager BlackRock.
New Date for BlackRock’s Spot Ethereum ETF Unveiled
The BlackRock spot Ethereum ETF dubbed the iShares Ethereum Trust will not get a decision on whether it is approved or denied until March 10, 2024, according to a filing published by the markets regulator.
BlackRock’s filing comes in the wake of the Bitcoin analogue of the product and the request for rule change was filed by the Nasdaq Global Select Market to list the shares of iShares Ethereum Trust on its platform. Per the regulator, the proposed rule change which was published for comment in the Federal Register has received no feedback from the public to date.
The SEC noted that it needed additional time to deliberate on the application in order to make the right decision.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC wrote in the filing adding that in pursuant to its extant statutes, it now “designates March 10, 2024, as the date by which the Commission shall either approve or disapprove, or institute proceedings to determine whether to disapprove, the proposed rule change.”
This delay to BlackRock’s spot Ethereum ETF follows a related postponement of the application from rival Fidelity Investments. With the SEC liable for this postponement up to 240 days from the date of the first application, it is choosing to take its time appropriately.
Prospects of ETH ETFs
The emergence of spot Bitcoin ETF has heightened the optimism and the debate on the prospects of spot Ethereum ETFs in the United States.
At the moment, there are divergent views on whether the markets regulator will greenlight this product but Commissioner Hester Peirce has reiterated how the agency has learned from past mistakes and will likely take a different path with the numerous Ethereum applications.
While no one can say for sure the products will be approved, proponents believe a precedent has been set and with BlackRock in the race, the chances of securing the approvals are generally higher.
Beyond spot Ethereum ETFs, speculations continue to grow that an XRP spot ETF might also be on the horizon.
