SEC delays BlackRock ether ETF proposal again

The delay was expected, putting a May decision on potential ETH ETFs in focus

March 4, 2024 05:53 pm

SEC Chairman Gary Gensler | Third Way Think Tank/"CMI 101: Demystifying Derivatives with CFTC Chairman Gary Gensler" (CC license)

The Securities and Exchange Commission delayed a decision on BlackRock’s ether ETF proposal on Monday.

The move was largely expected. Analysts, like Bloomberg ETF analyst James Seyffart, believe that a decision to either green light or postpone the launch of the spot ether ETFs won’t come until May — at the earliest.

BlackRock’s proposed ETF was previously delayed back in January after the SEC gave a slew of bitcoin ETFs the green light.

Read more: Ethereum spot ETFs are next

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At the time, Seyffart posted on X that he was carefully watching May 23 as the “next date that matters.”

He told Blockworks in January that he put the odds of approval at around 60% by May. May is important because it marks the 240-day window for the SEC to decide on the proposals from VanEck and Ark 21Shares.

“So if the SEC wants to get geared up and ready to go and wants everyone to go at the same time, they’ll likely do it on May 23 unless they can figure out some way to deny or delay this whole process and do what they want,” he said at the time.

Prior to the January BlackRock delay, the SEC also delayed a decision on Fidelity’s proposed ETF.

Since the initial delays, other spot ETH ETF hopefuls have amended their proposals to add certain language, including staking.

Ark 21Shares amended its S-1 for the proposed fund last month, adding language about staking in brackets. Van Buren Capital general partner Scott Johnsson noted at the time that the approach meant the issuer wanted to add the section, but hadn’t yet held conversations with the regulatory agency.

February also saw a new addition to the ETH ETF hopefuls, with Franklin Templeton throwing its hat in the ring. It, notably, also included language about staking though it didn’t put it in brackets like Ark 21Shares.

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