SEC Extends Decision Timeline on BlackRock and Fidelity’s Spot Ethereum ETFs, Seeks Public Feedback
In Brief
US SEC extended the decision timeline for the spot Ethereum ETF proposals from BlackRock and Fidelity, seeking public input about the PoS mechanism.
United States Securities and Exchange Commission (SEC) extended the timeline for its decision regarding the proposal for a spot Ethereum exchange-traded fund (ETF) from investment company BlackRock and mutual fund Fidelity, as indicated in a filing.
The SEC also announced its intention to gather public input by posing questions regarding the approval of the ETF proposed by both BlackRock and Fidelity. One specific inquiry focused on whether Ethereum’s proof-of-stake (PoS) mechanism raised unique concerns about the susceptibility of ether to fraud and manipulation. The deadline for collecting feedback is set for the 25th, based on local time.
Both BlackRock and Fidelity filed for their spot Ethereum ETFs in November. Since then, asset management companies such as Franklin Templeton, Ark 21Shares, VanEck, and Grayscale have also submitted their proposals. Earlier this year, BlackRock and Fidelity, among other companies, launched spot Bitcoin ETFs after receiving approval from the SEC.
Spot Ethereum ETFs Approval Uncertainty
The regulatory approval status and timeline for spot Ethereum ETFs by the agency remain undetermined, introducing uncertainty about the potential timeframe for approval.
Cryptocurrency experts hold differing opinions on the likelihood of a spot Ethereum ETF being approved. Some, like Bloomberg analyst James Seyffart, express optimism, anticipating a potential SEC approval as early as May, pointing to recent approvals of Bitcoin ETFs as a potential precursor for spot Ethereum ETFs.
Those with a more cautious perspective express uncertainty about the approval of spot Ethereum ETFs. Variant Fund Chief Legal Officer Jake Chervinsky echoed this sentiment, citing the existing legal complexities and the policy landscape that increase the likelihood of denial or a potential SEC request for withdrawal.
Recently, SEC Chair Gary Gensler clarified that the agency’s decision to approve eleven spot Bitcoin ETFs should be understood as specific to that particular cryptocurrency and not be interpreted as indicative of a broader approval trend for other assets.
The fate of spot Ethereum ETFs remains uncertain, with regulatory timelines extended and varying opinions among experts, prompting ongoing discussions and evaluations within the cryptocurrency landscape.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
