The Securities and Exchange Commission (SEC) has delayed its decision on BlackRock’s application to launch a spot Ethereum (ETH) ETF to March.
According to a document on the SEC website, a new decision on the application, which was supposed to be made on Jan. 25, is now expected on March 10, 2024. SEC representatives explained their decision due to the lack of time to review all the application details.
“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.”
Bloomberg Intelligence ETF analyst James Seyffart said delays in Ethereum spot ETF offerings will likely continue.
On Jan. 19, 2024, the Commission postponed the decision on the application to launch a spot Ethereum-ETF from Fidelity. A new deadline has also been set for March.
Several companies, including BlackRock, have filed papers to open an Ethereum-based spot fund. Company CEO Larry Fink said he supports the launch of this product category. JPMorgan Chase noted that the SEC will unlikely approve this class of funds in the spring of 2024. Among other things, they also pointed out the uncertain status of Ethereum.
The media expects the SEC to approve the launch of spot Ethereum ETFs by the end of summer 2024. In citing her sources, Fox Business journalist Eleanor Terrett noted that Ethereum’s “opaque” status may complicate the process. However, her source doesn’t think so. According to him, the Commodity Futures Trading Commission already positions the asset as a commodity.