SEC Postpones BlackRock’s Ethereum ETF Approval to Further Examine Legal and Policy Matters
The U.S. Securities and Exchange Commission (SEC) has once again decided to delay its decision on BlackRock’s proposed Ethereum exchange-traded funds (ETFs). This is the second time the decision has been postponed, indicating a thorough examination of the legal and policy aspects of the iShares Ethereum Trust.
BlackRock submitted the application for the iShares Ethereum Trust on November 21, 2023, with the intention of listing and trading shares under Nasdaq Rule 5711(d). The original decision date of January 24, 2024, has now been extended.
The SEC is taking a close look at the proposed rule change, focusing on aligning with the Securities Act’s Section 6(b)(5), which emphasizes investor protection and the prevention of fraudulent practices. They want to ensure that the ETF complies with these regulations and is in the public interest.
The proposed Ethereum Trust aims to mirror the performance of Ether, primarily by holding Ether as assets with a custodian. The valuation process involves assessing Ether based on the CF Benchmarks Index. The Trust will issue and redeem baskets of shares on a continuous basis, in exchange for an amount of Ether determined by the trustee.
Senior Bloomberg analyst Eric Balchunas suggests that Ethereum ETFs may not attract the same attention as Bitcoin ETFs. He compares them to opening acts at a concert, stating that Bitcoin is the headliner. However, the approval of Ethereum ETFs could have significant implications for investor sentiment and open up new opportunities for crypto investment.
As the SEC carefully evaluates BlackRock’s Ethereum ETF proposal, market participants are closely monitoring the potential impact on investor sentiment and market dynamics. If approved, these ETFs could provide investors with exposure to the cryptocurrency market without directly holding the digital asset.
Overall, the SEC’s decision on BlackRock’s Ethereum ETFs is eagerly awaited, as it could have a significant influence on the crypto investment landscape.