Key Points
- The Securities and Exchange Commission (SEC) has postponed its decision on BlackRock’s proposed Ethereum ETF.
- The regulator is seeking public feedback on the proposal, specifically regarding Ethereum’s proof of stake mechanism.
The SEC has extended the decision-making timeline for BlackRock’s proposed spot Ethereum ETF, according to a recent filing.
This is the second time the SEC has deferred its decision on BlackRock’s iShares Ethereum Trust.
Public Feedback Requested
On Monday, the regulator solicited public input on whether the ETF should be approved.
Specifically, it inquired about whether the proof of stake mechanism of Ethereum raises any unique concerns about the cryptocurrency’s susceptibility to fraud and manipulation.
The SEC also postponed a decision on Fidelity’s spot Ethereum ETF, as stated in a Monday filing.
The agency asked similar questions as it did for BlackRock.
Public comments for both are due within the next 21 days, and rebuttals are due in 35 days.
Other Firms and Predictions
Both BlackRock and Fidelity filed their spot Ethereum ETFs in November.
Since then, other companies such as Franklin Templeton, Ark 21Shares, VanEck, and Grayscale have also filed.
Earlier this year, BlackRock, Fidelity, and others launched spot Bitcoin ETFs after obtaining SEC approval.
Crypto experts are divided on whether a spot ether ETF is imminent.
Some optimists anticipate SEC approval as early as May, citing the recent approvals of Bitcoin ETFs as a positive sign.
However, others are more cautious, viewing the approval of spot ether ETFs as uncertain.
Jake Chervinsky, Chief Legal Officer at Variant Fund, expressed this cautious sentiment.
He stated that the legal issues and policy environment in DC make denial more likely than general sentiment suggests.
Finally, SEC Chair Gary Gensler stated that the agency’s approval of spot Bitcoin ETFs should not be interpreted as anything beyond that.
