Investors have become more optimistic about the possibility of Ethereum (ETH) being approved as an ETF. The launch and approval of Bitcoin ETFs was a historic event in the US. Now, everyone is looking forward to the May 23rd announcement.rd deadline.
The US Securities and Exchange Commission has now delayed its decision on whether to approve or reject BlackRock’s Ethereum-based ETF proposal a second consecutive time. In its latest move, the US regulator has asked the public for feedback on investment products based upon the second largest cryptocurrency.
BlackRock’s Ethereum Spot iShares ETF is yet to be approved
BlackRock filed For an ETH spot ETF in November 2023. The iShares Ethereum Trust, which the firm proposes to launch, is designed for Ether’s price performance to be closely tracked.
Fidelity also a giant in asset management, proposed an Ethereum ETF spot the same time as BlackRock. Franklin Templeton Grayscale and Ark Invest are also waiting for approval from the SEC.
The US regulatory agency had delayed BlackRock’s proposal from January to March. The commission claimed that it had found it. “appropriate” To designate a larger examination period for the proposed rule changes to list and trade the shares of the iShares Ethereum Trust, and to the “issues raised therein.”
As March is here, the US regulator has again delayed its decision. The Monday filing Shows that the SEC was unable to protect your privacy “instituting proceedings under Section 19(b)(2)(B) of the Act12 to determine whether the proposed rule change should be approved or disapproved.”
As the document explains in detail, the institution of proceedings does not mean that the regulator is ready to make a decision. The SEC believes this is appropriate, given “the legal and policy issues raised by the proposed rule change.”
The Commission has initiated proceedings to enable additional analysis on the proposed rule change’s compatibility with Section 6(b), which, amongst other things, requires that the rules of national securities exchanges be “designed to prevent fraudulent and manipulative acts and practices” “To protect the interests of investors and the general public”
US SEC Requests Public Feedback
The regulatory agency is seeking public input and has asked commenters to provide their views. “sufficiency of the statements in support of the proposal (…) in addition to any other comments they may wish to submit about the proposed rule change.”
The document outlines six major concerns that interested commenters may specifically address and provide data to support.
In the document, there are questions about whether the exchange has a valid argument to list Bitcoin ETPs. apply equally Ether, and whether it is susceptible to fraud or manipulation because of the Ethereum ecosystem’s specific features such as “concentration of control or influence by a few individuals.”
Timeframes for comments are 21 days from the publication date in the Federal Register. Rebuttals to public submissions made by others must be filed within 35 days of the date they were published in the Federal Register.
Analysts Views on Approval
ETF experts such as James Seyffart, and Eric Balchunas expressed their optimism about the approval of Ethereum ETFs in May this year. As reported Bitcoinist Seyffart said that after the delays in January, a postponement to March was likely.
I can’t say for sure that the spot ETH ETF will not be approved by 23 May.
I’m only saying that the legal issues in DC and the policy environment make denial more likely (or a SEC request to withdrawal) than general sentiment would suggest.
“Blackrock always wins” It’s a lazy bull.
— Jake Chervinsky (@jchervinsky) March 3, 2024
Jake Chervinsky is a lawyer and CLO at Variant. He recently shared his views. Chervinsky does not rule out approval by the 23rd of May.
The legal issues in DC and the policy climate there are what he believes will tip the balance towards a refusal or withdrawal of the request. The layer considers The SEC will then issue a denial letter explaining the reasons for its refusal in the event of a request to withdraw and a possible refusal by the asset management company. But “Either way, no ETF.”
The 1-day chart shows that ETH is currently trading at $3.762.61. Source: TradingView.com
Chart by Tradingview.com. Image from Unsplash.com.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: bitcoinist.com