SEC postpones the deadline on BlackRock’s application for a spot ETH ETF to March
Previously, a similar decision was made on Fidelity’s application
25.01.2024 - 14:03
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What’s new? The US Securities and Exchange Commission (SEC) has postponed the deadline for a decision on investment company BlackRock’s application to launch an Ethereum-based spot exchange-traded fund (ETF) to March 10. BlackRock applied for iShares Ethereum Trust back in November last year. The regulator earlier postponed until March 5 the deadline on Fidelity’s application for a similar product.
What else is known? On January 11, BlackRock and Fidelity were among the companies that received SEC approval to launch spot BTC ETFs. Their products under the tickers IBIT and FBTC are traded on the Nasdaq and CBOE, respectively. By January 19, the inflow of funds into the products of both companies has passed the $1 billion mark.
Bloomberg analyst James Seyffart believes the SEC will continue to delay a decision on Ethereum funds over the next few months. He believes the deadline could move to May 23.
In addition, the SEC emphasized in its decision on spot BTC ETFs that it only applies to bitcoin-based funds, which are categorized as a commodity. Officials clarified that the approval of such products does not signal a willingness to allow products based on other cryptocurrencies, which are securities, into the market.
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Later in the interview, SEC chair Gary Gensler reiterated the agency’s view: “As I said two weeks ago, that which we did with regard to bitcoin exchange-traded products is cabined to this one commodity non-security and shouldn't be read to be anything other than that.”
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