SEC Delays BlackRock's Ethereum ETF Application—Investor Anticipation Grows Amid Regulatory Hurdles

The Securities and Exchange Commission (SEC) has, for the second time, postponed its decision on the proposed spot Ethereum exchange-traded fund (ETF) from investment behemoth BlackRock.

SEC Delays BlackRock's iShares Ethereum Trust Decision, Rejects March 10 Deadline

BlackRock's original application for the iShares Ethereum Trust was submitted to the SEC in November. However, the federal regulator delayed its decision two months later, citing the necessity for an extended review period. A new deadline of March 10 was subsequently set, only to be discarded, as indicated in a filing on Monday.

SEC Postpones Spot Ethereum ETF Decisions, Delays Forecasted Until May 23 as Deadline Looms for VanEck and Ark Invest

The SEC has similarly postponed decisions on various other spot Ethereum ETF applications, including those from Fidelity, Invesco, and Galaxy Digital. Bloomberg ETF analyst James Seyffart forecasts continued delays until May 23, which marks the final deadline for applications from VanEck and Cathie Wood’s investment firm Ark Invest. These applications were submitted on September 6, 2023, with Fidelity's application originating in 2021 and facing its first delay two weeks later.

Spot Ethereum ETF Interest Surges as Bitcoin Nears All-Time High, With $1.84B Inflows Spurring Demand

Interest in spot Ethereum ETFs is on the rise, particularly as Bitcoin approaches a new all-time high, coming within 6% of the highly anticipated milestone. The surge in Bitcoin's value is largely attributed to the success of spot Bitcoin ETFs, which witnessed a substantial $1.84 billion in inflows within just one week. The prospect of a similar trend unfolding with Ethereum, especially as it reaches its highest price in over a year, is generating significant pent-up demand within the market.

In summary, the repeated delays in the approval process for BlackRock's spot Ethereum ETF, coupled with the broader trend of postponements affecting other applications, reflect the cautious approach taken by the SEC towards crypto-related financial products amidst a backdrop of heightened market interest and anticipation.