SEC Delays BlackRock’s Ethereum ETF Decision to March

The Securities and Exchange Commission (SEC) of the United States has delayed its decision on BlackRock’s proposed spot Ethereum (ETH) exchange-traded fund (ETF). The SEC cited the need for more time to review the proposed rule change and extended the deadline by one day, making it the first of several possible delays that can occur within a 240-day period. The initial deadline for this decision was January 25, and the SEC must make a final decision on BlackRock’s spot Ether ETF by August 7. Bloomberg ETF analyst Eric Balchunas predicts that a final decision for all pending spot Ether ETFs will be made in May, following a similar pattern to the SEC’s decision on Bitcoin ETFs in January.

Apart from BlackRock, VanEck, Ark 21Shares, Grayscale Investments, Invesco Galaxy, and Fidelity have also submitted applications for spot Ether ETFs. Each applicant has a different final decision deadline, ranging from May to August. Bloomberg ETF analyst James Seyffart expects to see more delays for spot Ether ETFs in the coming months, with May 23 being a significant date for these decisions. Balchunas previously estimated a 70% chance of approval for spot Ether ETFs by May, while Morgan Creek Capital CEO Mark Yusko believes there is less than a 50% chance of approval, suggesting that the SEC is still unfriendly towards the cryptocurrency industry.

Commissioner Hester Peirce, also known as “Crypto Mom,” has expressed confidence that a court battle will not be necessary to convince the SEC to approve spot Ether ETFs. Peirce believes that the SEC should not require a court ruling on their approach to consider it fair and non-arbitrary. Despite her reassurances, industry experts remain divided on the outcome of these ETF applications, with some predicting approval and others expecting rejection.