The Securities and Exchange Commission (SEC) has recently caused a stir in the cryptocurrency market as it decided to delay its decision on BlackRock’s application for an Ether exchange-traded fund (ETF).
This move by the SEC has left many in the crypto space eagerly awaiting the outcome, which is now scheduled to be revealed on March 10, 2024.
The SEC’s decision to delay its ruling came just one day before the original January 25 deadline.
In an official filing, Sherry Haywood, the SEC’s Assistant Secretary, explained that the delay was necessary to ensure a thorough review of the proposed rule change.
This decision has introduced an element of uncertainty into the crypto market, as investors and enthusiasts alike eagerly await the fate of BlackRock’s iShares Ethereum Trust.
BlackRock, the world’s largest asset management firm, boasting assets under management exceeding $9.1 trillion, had filed for the approval of its Ether ETF with Nasdaq on December 11, 2023.
The SEC’s delay in reaching a decision marks the first use of a 240-day window the regulator has to consider such applications.
In addition to BlackRock, several other prominent financial firms have applied for spot Ether ETFs.
These include VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex. Each of these companies is now awaiting their respective decision dates. VanEck’s application will be decided upon by May 23, ARK 21Shares by May 24, Hashdex by May 30, Grayscale by June 18, and Invesco by July 5.
It’s worth noting that earlier in the same month, the SEC made a historic decision by approving 11 spot Bitcoin ETFs for listing on US stock exchanges.
This marked a significant milestone in the cryptocurrency industry, and companies seeking approval for spot Ether ETFs had already listed their Bitcoin ETFs.
Notably, BlackRock’s Bitcoin ETF experienced significant inflows within two weeks of its launch, while the Grayscale Bitcoin Trust, a closed fund, faced outflows.
The delay in the SEC’s decision on BlackRock’s Ether ETF application has heightened anticipation and uncertainty in the crypto market.
Many are hopeful that this ETF, if approved, could pave the way for broader institutional adoption of Ethereum, potentially leading to increased market participation and liquidity.
March 10, 2024, is now a date of great significance for the crypto community, as it will determine the future of Ether ETFs in the United States.