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SEC Postpones Decision on BlackRock Spot Ethereum ETF

US Securities and Exchange Commission (SEC) extended period of consideration of BlackRock's application to launch a spot Ethereum ETF.

Same solution regulator accepted regarding a similar offer from Fidelity.

The commission will continue to collect comments from the public.

Both investment giants have filed applications to register exchange-traded funds based on the spot price of the second-largest cryptocurrency in November 2023.

In January, the SEC approved similar Bitcoin products. BlackRock and Fidelity were among the 11 issuers of these ETFs.

Experts disagree on when the regulator will make a positive decision on Ethereum exchange instruments.

Some are betting on a May deadline for a number of applications, including from VanEck and Grayscale.

Bloomberg stock analyst Eric Balchunas estimated the chances of this happening at 70%. His colleague James Seyffart gave a more conservative forecast. At the same time, the expert categorically rejected the hopes of optimists for March, even betting 4 ETH against it.

For example, analysts at JPMorgan and TD Cowen expressed doubts about the imminent approval of Ethereum-ETF.

Morgan Creek CEO Mark Yusko admitted that this would happen in May, but with less than a 50% chance. He cited the SEC's continued hostility toward cryptocurrencies as the reason.

Well-known industry lawyer Jake Chervinsky expressed a similar opinion.

“Legal issues and the political environment in the capital make a denial (or an SEC revocation request) more likely than the general consensus suggests. “BlackRock always wins” is a primitive approach,” the expert wrote.

Founder of Ikigai Asset Management Travis Kling partly agrees with him. The entrepreneur noted that there is no active communication between the Commission and potential issuers, as was the case before the registration of the Bitcoin ETF. For this reason, he considers it most likely to postpone the regulator’s decision to August.


Source: Cryptocurrency

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