The Securities and Exchange Commission (SEC) of the United States has postponed its decision regarding BlackRock’s proposal for a spot Ether (ETH) exchange-traded fund (ETF) just a day before the deadline, stating the necessity for additional time to scrutinise the proposed rule amendment.
Sherry Haywood, the assistant secretary of the SEC, elucidated in a filing on Jan. 24 that “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change.”
This delay was announced a day prior to the Jan. 25 deadline and marks the initiation of a series of potential delays the SEC can implement over a span of 240 days. The initial deadline follows Nasdaq’s submission for an iShares Ethereum Trust (on behalf of BlackRock) on Dec. 11 by approximately 45 days.
While the SEC is mandated to render a final verdict on BlackRock’s spot Ether ETF by Aug. 7, Bloomberg ETF analyst Eric Balchunas anticipates that a decision on all pending spot Ether ETFs will likely occur in May, akin to the SEC’s resolution regarding 10 pending spot Bitcoin ETFs on Jan. 10.
VanEck and Ark 21Shares’ Ether ETF applications are set for a final decision deadline of May 23 and May 24, respectively. Meanwhile, the remaining three applicants—Grayscale Investments, Invesco Galaxy, and Fidelity Investments—face final deadlines on June 18, July 5, and Aug. 3, respectively.
James Seyffart, another Bloomberg ETF analyst, remarked on Jan. 24 that the next significant date is May 23, suggesting expectations for intermittent spot Ether ETF delays in the coming months.
Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. Next date that matters is May 23rd https://t.co/2zBBvHkrVk
— James Seyffart (@JSeyff) January 24, 2024
Earlier this month, Balchunas estimated the likelihood of a spot Ether ETF approval at 70% by May. SEC commissioner Hester “Crypto Mom” Peirce recently reassured applicants that resorting to legal action won’t be necessary to persuade the SEC to greenlight the spot Ether ETFs, emphasising, “We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ in order for us to get it right.”
Nonetheless, other industry experts are less sanguine. Mark Yusko, CEO of Morgan Creek Capital, predicts a probability of less than 50% for an approved spot Ether ETF, citing the SEC’s continued antagonism towards the cryptocurrency sector.