<img src="https://cryptoslate.com/wp-content/uploads/2024/01/ethereum-rock-guard.jpg” />
The US Securities and Exchange Commission (SEC) extended the decision period on BlackRock's planned ethereum spot ETF on January 24.
That notice refers to a proposed rule change that allows Nasdaq to list and trade shares of the BlackRock iShares ethereum Trust.
Previously, the SEC was required to approve, reject or initiate proceedings to approve or reject BlackRock's proposal by January 25, 2024. However, securities laws allow the agency to extend the decision period until March 10, 2024. .
The SEC noted that Nasdaq initially filed the proposed rule change on November 21, 2023, and that the proposal was published for comment in the Federal Register on December 11, 2023. The publication date determines the deadlines described above.
The SEC added that it has not received any comments on BlackRock's ethereum spot ETF proposal. By contrast, BlackRock's spot bitcoin ETF proposal received around 15 comments within two months of its presentation in June 2023.
The SEC is still expected to make a decision in May
The delay around BlackRock is not expected to impact the broader ethereum ETF proceedings. Bloomberg ETF analyst James Seyffart said today:
“Delays to the ethereum Spot ETF will continue to occur sporadically over the coming months. (The) next date that matters is May 23.”
May 23 is relevant as the SEC must approve or deny VanEck's ethereum spot ETF by that date with no possibility of further delays. The securities regulator will likely decide on other similar applications with different deadlines, including BlackRock's, along with VanEck's application at that time.
The SEC also delayed proceedings related to Fidelity's ethereum spot ETF this month. Again, this will not affect the decision deadline in May.
Although a decision is required by May 23, it is unclear whether the SEC will choose to approve the funds. FOX Business' Eleanor Terrett has reported internal resistance at the SEC and suggested that some ETF issuers are optimistic.
Polymarket fees ethereum-etf-approved-by-may-31?tid=1706129158202″>currently suggest a 54% chance of approval before May 31. Bloomberg ETF analyst Eric Balchunas predicts a 70% chance of approval.
