US SEC Delays Decision on BlackRock’s Spot Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision regarding BlackRock’s spot Ethereum exchange-traded fund (ETF) application. The new decision deadline has been set for March 10, 2024. In their latest filing, the SEC stated that they will either approve, disapprove, or institute proceedings to determine the fate of the proposed rule change. This delay allows the commission more time to consider the application and the issues raised.
Bloomberg Analyst Anticipates Further Delays
Bloomberg Intelligence ETF analyst James Seyffart expects sporadic delays in the decision-making process for spot Ethereum ETFs over the next few months. Seyffart highlighted May 23rd as the next date of significance. Delays in such applications have become somewhat expected, according to Seyffart’s tweet.
Fidelity’s Spot Ethereum ETF Decision Also Postponed
The SEC has postponed its decision on Fidelity’s spot Ethereum ETF as well. In a filing on January 18, the Commission extended the decision deadline to March 5. Seyffart commented that this delay was also predictable.
Goldman Sachs Optimistic About Ethereum ETF Approval
Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, expressed optimism about the potential approval of spot Ethereum ETFs in the coming months. During a CNBC interview, McDermott emphasized the determining factor for approval, which revolves around whether the ETFs are perceived as securities. He believes this determination will be crucial for the approval process. McDermott also highlighted the cost-effective nature of investing in Bitcoin through such ETFs compared to direct crypto investment. The participation of major, regulated institutions in issuing Bitcoin ETFs is seen as a significant step for the market.
Analyst comment
Positive: The news that the SEC has delayed its decision on BlackRock’s spot Ethereum ETF and Fidelity’s spot Ethereum ETF can be seen as positive for the market. This delay allows more time for the SEC to consider the applications and any potential issues raised. Additionally, Goldman Sachs expressing optimism about the potential approval of spot Ethereum ETFs is also seen as positive. The participation of major, regulated institutions in issuing Ethereum ETFs is seen as a significant step for the market. The market is likely to experience sporadic delays in the decision-making process over the next few months, but there is optimism for approval in the coming months.
