The United States Securities and Exchange Commission (SEC) has extended the decision-making process regarding the Ethereum-based exchange-traded fund (ETF) proposed by BlackRock to January 24th.
This development took place within the framework of a proposal for a rule change by Nasdaq that would allow the listing and trading of shares in BlackRock’s iShares Ethereum Trust fund.
Previously, the SEC was obligated to approve, reject, or initiate proceedings regarding BlackRock’s proposal by no later than January 25, 2024. However, securities legislation permits the agency to extend this period until March 10, 2024.
The Commission noted that Nasdaq presented this proposal on November 21, 2023, and it was published in the Federal Register for comments on December 11, 2023. This publication date is the basis for calculating the aforementioned periods.
To date, the SEC has not received any comments regarding BlackRock’s Ethereum-based ETF proposal. In comparison, BlackRock’s Bitcoin-based ETF proposal, submitted in June 2023, received about 15 comments within two months.
Eyes on May 23 for Ethereum ETF Decisions
The delay with BlackRock is not expected to affect Ethereum-based ETF transactions in general. Bloomberg ETF expert James Seyffart stated today,
“Spot Ethereum ETF delays will continue to happen sporadically over the next few months. Next date that matters is May 23rd.”
May 23 is a critical date for the SEC to approve or reject the Ethereum-based ETF proposed by VanEck without further delay. The securities regulatory body is expected to make decisions on other similar applications, including BlackRock, by this date.
This month, the SEC also similarly postponed Fidelity’s proposal for an Ethereum-based ETF. However, this will not affect the decision date in May.
The SEC must make a decision by May 23; however, it remains unclear whether the funds will be approved. While Eleanor Terrett from FOX Business reports some resistance within the SEC, some ETF publishers remain hopeful about the situation.
Polymarket predicts a 54% chance of approval by May 31, while Bloomberg ETF expert Eric Balchunas forecasts a 70% chance of approval.
