The U.S. SEC Delays Decision on BlackRock’s Ethereum ETF to March


The U.S. Securities and Exchange Commission (SEC) has extended the review period for proposed rule changes related to the listing of BlackRock’s iShares Ethereum Trust spot ETF. The new deadline for action is set for March 10, 2024, according to today’s filing.

Originally submitted by Nasdaq on November 21, 2023, the proposal aims to provide direct exposure to Ethereum price fluctuations under Nasdaq Rule 5711(d) for commodity-based trust securities.

The SEC extended the initial 45-day review period, scheduled to end on January 25, 2024, citing the need for additional time to carefully consider the proposal and surrounding issues related to the Ethereum ETF product.

Initially published for public comment on December 11, 2023, the proposed rule changes have not received any public comments to date. The longer review period reflects the SEC’s cautious approach to cryptocurrency-based ETFs in the evolving legal landscape, as outlined by the Securities Exchange Act of 1934.

BlackRock, the world’s largest asset manager, has been at the forefront of integrating digital assets into traditional investment vehicles. However, the SEC’s hesitancy reflects ongoing concerns about the volatility, security, and regulatory compliance of cryptocurrency products.

Investors and industry experts are closely monitoring SEC actions, as approval of such an ETF would mark a significant milestone in the widespread acceptance of cryptocurrencies. The extended review period indicates that the SEC is taking a meticulous approach to ensure that any potential risks associated with the iShares Ethereum Trust are minimized.

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