The Securities and Exchange Commission announced the extension of the deadline to make a decision on BlackRock’s proposal for an Ethereum Exchange-Traded Fund. According to the statement, the regulatory body needs more time to assess the proposal and consider the issues raised in relation to it. This delay pushes the new deadline for approval, disapproval, or the institution of additional proceedings to March 10.
BlackRock, the investment management company, filed its application for an Ethereum ETF, named iShares Ethereum Trust, last November. This fund would join the growing list of cryptocurrency-linked financial products in the market. However, this is not the only case of a delay in evaluating such proposals by the SEC. Fidelity also faces a delay in the approval of its application for the Fidelity Ethereum Fund, according to a presentation made last week.
The Ethereum ETF May Face Delays Until May. Gary Gensler Cooled Speculative Fever by Distinguishing It from the Recent Bitcoin ETF
Bloomberg Intelligence ETF analyst, James Seyffart, pointed out that delays in Ethereum financial product proposals might continue intermittently in the coming months. He also highlights a specific date, May 23, as another key point to watch.
The possibility of an ETH ETF has generated both optimism and skepticism among experts. Some believe that approval could happen as early as May, following the recent approval of the Bitcoin ETF. However, SEC Chairman Gary Gensler tempered these expectations by indicating that previous decisions on Bitcoin ETFs should not be seen as a precedent for products linked to other cryptocurrencies.
Gensler emphasized that previous decisions were limited to products related to Bitcoin, an asset that the SEC classifies as a commodity and not a security. This nuance is crucial, as Bitcoin ETFs were approved based on the classification of BTC as a commodity. Gensler’s statements suggest that the SEC could take a different approach to products linked to other cryptocurrencies, such as Ethereum.
Amidst these regulatory considerations, cryptocurrency industry investors eagerly await the evolution of the situation. The financial market is attentive to the SEC’s decisions and how they could impact the adoption and legitimacy of cryptocurrencies. We will continue to wait for any developments that may arise.