The United States Securities and Exchange Commission (SEC) has postponed the decision on asset management firm BlackRock’s spot Ethereum exchange-traded fund (ETF) application.
While it had a deadline to make a proposed rule change on Jan. 25, it has pushed it back another 45 days, leading to the decision looming in March at some point.
BlackRock Spot Ethereum ETF Application Needs More Time for Public Feedback
In a recent filing, the SEC outlined that it is yet to receive any comments on the proposed rule change to allow BlackRock to list a spot Ethereum ETF.
It was put forth for public comment in December 2023. As a result, the US regulator will be extending the decision deadline by approximately one and a half months, to March:
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
Last week, on Jan. 18, the SEC also postponed announcing a decision on Fidelity Investments’ spot Ethereum ETF until March 5.
This comes amid BlackRock’s CEO Larry Fink recently stating his optimism for Ethereum ETFs.
On January 12, BeInCrypto reported that Fink explained that he sees value in an Ethereum ETF, as it will make a clearer path for real-world tokenization.
“I see value in having an Ethereum ETF. These are just stepping stones towards tokenization and I really do believe this is where we’re going to be going.”
Crypto Analysts More Skeptical of Ethereum ETFs
BlackRock has become accustomed to this process, facing similar delays with its spot Bitcoin ETF application. However, after nearly six months of filing, it received approval on Jan. 10. However, the initial filing for a spot Bitcoin ETF by BlackRock was made in June 2023.
However, crypto analysts are a little more skeptical whether there will be an institutional demand for a spot Ethereum ETF.
On Jan. 18, BeInCrypto reported that Raoul Pal, CEO of Real Vision, indicated there is a chance that institutions may prefer to own the asset itself over a spot Ethereum ETF.
Pal argued that if Ethereum ETFs do not offer staking yields, institutions may prefer to own Ethereum directly. This preference is because holding the asset allows them to stake it and earn yields, an option not typically available through ETFs.
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