SEC Delays BlackRock's Ethereum ETF Decision, Approval May Extend to May

Introduction Delayed

The Securities and Exchange Commission (SEC) has postponed its decision on BlackRock's application for spot Ethereum exchange-traded funds (ETFs), potentially delaying wider investor access to the second-largest cryptocurrency. The SEC, in a recent filing, cited the need for "sufficient time to consider" the proposal, setting a new deadline for a decision on March 10.

Pattern of Delays

This delay mirrors the historical pattern observed with spot Bitcoin ETFs, which faced extensive delays before eventual approval in January. Analysts, such as Bloomberg's James Seyffart, anticipate sporadic delays continuing until late May, with a definitive answer expected on May 23.

Internal SEC Skepticism

SEC Chairman Gary Gensler's past remarks reveal internal skepticism towards crypto. While the approval of Bitcoin ETFs seemed somewhat forced, optimism about Ethereum persists. Commissioner Hester Peirce, known for her pro-crypto stance, suggests that applying traditional ETF standards to crypto might facilitate the approval of spot Ethereum ETFs without court intervention.

Crypto Hopefuls and Legal Challenges

As attention focuses on Ethereum, the XRP community awaits news on a potential XRP ETF. However, legal challenges make its launch in 2024 less likely, according to Seyffart. Issuers and investors are closely watching for signals from the SEC staff regarding their willingness to engage with Ethereum ETF applications, similar to their involvement with spot Bitcoin ETFs.

Summary:

The SEC's delay in deciding on BlackRock's Ethereum ETF application pushes back potential wider investor access to Ethereum. Analysts predict ongoing delays until late May, echoing the historical pattern seen with Bitcoin ETFs. Internal SEC skepticism persists, but pro-crypto voices like Commissioner Hester Peirce suggest a potential smoother approval process for spot Ethereum ETFs.

The SEC's cautious approach continues to impact the introduction of Ethereum ETFs, reflecting the broader regulatory landscape. Projections suggest ongoing delays, underscoring the need for issuers and investors to closely monitor developments in the SEC's stance on crypto.