Ethereum ETF Approval: SEC Delays BlackRock’s Proposal Again, Seeks Public Feedback

BlackRock’s Ethereum ETF Proposal

In November 2023, BlackRock submitted a proposal for an Ethereum spot ETF, which aims to track the price of Ether. Other firms, including Fidelity, Franklin Templeton, and Ark Invest, have also filed similar proposals.

SEC’s Delay and Public Feedback Request

The SEC has twice delayed its decision on BlackRock’s proposal. On March 6, the agency announced that it was seeking public feedback on the proposal.

The SEC is requesting comments on several concerns, including:

  • Whether the arguments for approving Bitcoin ETPs apply to Ether
  • Whether Ether is susceptible to fraud or manipulation due to the Ethereum ecosystem’s characteristics

Analyst Views

ETF experts have expressed mixed views on the likelihood of Ethereum ETF approval by May 23. Some are optimistic, while others see legal and policy issues as potential roadblocks.

Next Steps

The public has 21 days from the date of publication in the Federal Register to submit comments. The SEC will then review the comments and make a final decision.