SEC Pushes Back Decision on BlackRock, Fidelity’s Ether ETF Applications
The U.S. Securities and Exchange Commission (SEC) announced on Monday that it would delay its decision on the exchange-traded fund (ETF) applications for Ethereum’s ether (ETH) submitted by BlackRock and Fidelity. The postponement triggers a comment period for both applications, raising questions about the potential approval of spot ether ETFs and their alignment with the arguments that facilitated the acceptance of spot bitcoin ETFs.
The SEC has invited public input to evaluate whether the rationale supporting recently approved spot bitcoin ETFs is applicable to ETFs designed to hold Ethereum’s ether. Additionally, the regulator seeks feedback on concerns related to the susceptibility of spot ether ETFs to manipulation and the comparability between spot and futures ether exchange-traded products.
James Seyffart, an analyst with Bloomberg Intelligence, anticipates ongoing delays in the decision-making process in the coming weeks. Notably, May 23 serves as the final deadline for some ETF applications, making it a critical date for market observers.
Seyffart suggests that a potential sign of optimism may emerge if applicants initiate updates to their filings by April, akin to the iterative discussions that preceded the approval of bitcoin ETFs in January. While some issuers have made updates in recent weeks, these adjustments appear to be more aligned with lessons learned from the bitcoin ETF application process rather than direct responses to SEC guidance.
“We’ve seen a couple of updates over the last 30 days. Some issuers have made adjustments, but thus far, these updates seem to align with lessons learned from the bitcoin ETF process. There is no specific update directly related to ETH that indicates ongoing discussions with the SEC,” Seyffart remarked.
The SEC is known for its reserved stance and limited communication on ongoing matters, maintaining a strict confidentiality policy. As the industry closely monitors developments, the market remains poised for potential updates and insights into the SEC’s evaluation of these ETF applications.
