The US Securities and Exchange Commission (SEC) on January 24 extended the decision period for BlackRock’s planned spot Ethereum ETF.
That notice concerns a proposed rule change that would allow 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 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 comment on BlackRock’s spot Ethereum ETF proposal. BlackRock’s spot Bitcoin ETF proposal, by contrast, received around 15 responses within two months of its submission in June 2023.
SEC still expects to make a decision in May
The delay around BlackRock is not expected to impact broader Ethereum ETF proceedings. Bloomberg ETF analyst James Seyffart said today:
“Spot Ethereum ETF slowdowns will continue to occur sporadically in the coming months. [The] The next date that matters is May 23.”
May 23 is relevant because the SEC must approve or deny VanEck’s spot Ethereum ETF by that date without any possibility of further delays. The securities regulator will likely rule on other similar applications with different deadlines, including BlackRock’s, in addition to VanEck’s application at that time.
The SEC this month similarly postponed proceedings surrounding Fidelity’s spot Ethereum ETF. Again, this does not affect the May decision deadline.
While a decision must be made by May 23, it is unclear whether the SEC will choose to approve the funds. FOX Business’s Eleanor Terrett has reported internal resistance at the SEC, while suggesting some ETF issuers are bullish.
Polymarket odds currently indicate a 54% chance of approval by May 31. Bloomberg ETF analyst Eric Balchunas predicts a 70% chance of approval.