While the SEC has approved the application for spot Bitcoin ETFs, and the crypto market is still waiting to see the potential long-term impact of the decision, some analysts have shifted their focus to the next big news event related to the cryptocurrency market. The event in question will be when the SEC approves the application for spot Ethereum ETF.
While the answer to that question might be unclear at the moment, ETF analysts expect that the SEC will play a waiting game here and might push the deadline for spot Ether ETF applications to somewhere in May, which is the first of many final decision deadlines.
One firm that is keeping a close eye on this development is investment giant BlackRock because it is one of the prominent names that has also filed for spot Ether ETF approval.
The United States securities regulator has delayed the decision regarding BlackRock’s proposed spot Ether ETF.
The extension requested a day before the deadline is attributed to the regulator’s requirement for additional time to assess the proposed rule change thoroughly.
BlackRock filed its spot Ethereum ETF application back in November of 2023, and the deadline for the decision to be made regarding that matter was set to be 25th January 2024.
The SEC, however, announced the delay just a day before the January 25 deadline. It marks the initial extension in a series of potential delays available to the SEC, spanning 240 days.
Notably, this initial deadline occurs approximately 45 days following Nasdaq’s submission for an iShares Ethereum Trust on behalf of BlackRock.
The justification provided by the SEC regarding this matter states that the commission believes that more time should be given to the regulatory authority to review the proposed rule change.
In his statement, the SEC’s assistant secretary, Sherry Haywood, said: “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change.”
Bloomberg ETF analyst and expert Eric Balchunas has made a prediction in which he believes that a final decision may be made in May regarding all the pending spot Ethereum ETFs.
It is imperative to note that the SEC has time till August 7, 2024, which is the last date on which they have to decide on BlackRock’s spot Ethereum ETF.
Five firms are ahead of BlackRock in terms of having a deadline date for their spot Ether ETF applications. VanEck and Ark’s 21Shares are at the front of the line as their final decision deadline is May 23 and 24, respectively.
Grayscale Investments is given the deadline date of June 18, Invesco Galaxy has been allotted the date of July 5, and Fidelity Investments has a deadline date before BlackRock, which is August 3.
Another Bloomberg ETF analyst, James Seyffart, believes that the following critical date for the spot Ether ETFs will be May 23, the deadline date for VanEck’s application. He also believes that he can see SEC pushing the deadlines ahead at irregular intervals over the next few months.
In the preceding weeks, Balchunas estimated a 70% likelihood of the Securities and Exchange Commission approving a spot Ethereum ETF by May.
Commissioner Hester Peirce, often called “Crypto Mom,” has reassured applicants that securing approval for spot Ether ETFs won’t require resorting to legal battles with the SEC.
In her statement, she said: “We shouldn’t need a court to tell us that our approach is ‘arbitrary and capricious’ for us to get it right.”
However, whatever assurances delegates from the SEC provide to the applicants of Ether ETFs, industry analysts are not feeling very optimistic regarding the SEC’s willingness to approve this application quickly.
The CEO of Morgan Creek Capital, Mark Yusko, anticipates a probability of less than 50% for approving a spot Ethereum ETF. His prediction is grounded in the belief that the Securities and Exchange Commission continues to exhibit a hostile stance toward the cryptocurrency industry.
