SEC Postpones BlackRock's Ethereum ETF Launch

• SEC Postpones Decision on BlackRock's Spot Ethereum ETF
• SEC Extends Consideration Period for Proposed Rule Change
• Prior Delays on Spot Bitcoin ETF Applications
• SEC's Apparent Disapproval of Cryptocurrency
• Potential Delays in Future Ethereum ETFs

SEC Postpones Decision on BlackRock's Spot Ethereum ETF

In a recent turn of events regarding the upcoming line of cryptocurrency ETFs, the SEC has postponed making a verdict on BlackRock's Spot Ethereum$2,315 -2.42% ETF. Earlier in January, Spot Bitcoin$42,260 -0.64% ETFs received a breakthrough approval. BlackRock had hoped for a similar early decision on its pending spot ETH ETF application, but the SEC has remained unyielding.

SEC Extends Consideration Period for Proposed Rule Change

An SEC filing reveals that the commission deems it necessary to allocate more time to process the suggested rule alteration. This will allow adequate time to think about the proposed change and the issues connected to it. Consequently, the commission has designated March 10, 2024, as the new deadline to either approve or deny BlackRock's Ethereum ETF.

Prior Delays on Spot Bitcoin ETF Applications

It should be noted that the SEC also deferred decisions on all Spot Bitcoin ETF applications before granting approval, including that of BlackRock. Just a few days ago, the commission put off Fidelity's Spot Ethereum ETF application.

SEC's Apparent Disapproval of Cryptocurrency

The SEC's reluctance towards cryptocurrency is not a well-kept secret. Gary Gensler, the chair of the commission, seemingly indicated post-approval that he was almost forced to approve the Spot Bitcoin ETFs. This instantly provoked a social media backlash from cryptocurrency enthusiasts, creating an atmosphere of déjà vu. The SEC was initially given 45 days to make a decision on the ETFs or delay it, with the deadline ultimately landing on January 25 - just a day after the decision to prolong.

Potential Delays in Future Ethereum ETFs

There is a high likelihood that the SEC may attempt to extend the potential approval of Ethereum ETFs, BlackRock's included. Several other asset management firms have submitted ETF applications for Ethereum, aiming to incorporate it into their services. However, these applications might also face similar delays eventually.

Edited by Jonathan Stoker