In the latest development for the next wave of cryptocurrency ETFs, the SEC has delayed a decision on BlackRock’s Spot Ethereum ETF. Following landmark approval of Spot Bitcoin ETFs in early January, BlackRock hoped its pending spot ETH ETF application would be approved swiftly, but the SEC has yet to budge.
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“The commission finds it appropriate to delegate 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,” a new SEC filing says. The commission designates March 10, 2024, as the new deadline to approve or deny BlackRock’s Ethereum ETF.
The SEC also delayed decisions on every Spot Bitcoin ETF application before approval, including BlackRock’s. Just days ago, the commission delayed Fidelity’s Spot Ethereum ETF application.
It’s no secret that the SEC is not a fan of cryptocurrency. In fact, chair Gary Gensler implied shortly after approval that it was seemingly pushed to approve the Spot Bitcoin ETFs. Immediately, cryptocurrency enthusiasts went to social media to blast the commission, signaling a feeling of déjà vu. Following the initial filing, the SEC had 45 days to decide on the ETFs or delay it, and the commission’s deadline was Jan 25, a day after the decision to delay.
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Hence, it is likely that the SEC is looking to prolong the potential approval of Ethereum ETFs, including BlackRock’s. Other asset management firms have filed ETF applications for Ethereum in hopes of adding it to their services. However, those applications may likely be delayed eventually as well.