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SEC Delays BlackRock’s Spot Ethereum ETF Again

Last Updated March 5, 2024 8:37 AM
Teuta Franjkovic
Last Updated March 5, 2024 8:37 AM
By Teuta Franjkovic
Verified by Peter Henn

Key Takeaways

  • The decision on BlackRock’s Ethereum ETF was postponed again.
  • Other companies like Ark 21Shares and Franklin Templeton also seek approval for their own spot Ether ETFs.
  • BlackRock seeks to expand Bitcoin ETF holdings.

The United States Securities and Exchange Commission (SEC) has once again deferred its decision  regarding BlackRock’s proposal for an Ethereum ETF, a move that was widely anticipated by market watchers.

Analysts, including Bloomberg ETF analyst James Seyffart, suggest that a final verdict on the approval of spot Ethereum ETFs might happen in May, at the earliest.

SEC Postpones Decision on BlackRock’s Ether ETF Proposal

This is not the first delay for BlackRock’s proposed ETF. It suffered a previous postponement back in January, following the SEC’s approval of several Bitcoin ETFs.

Seyffart indicated that he was keenly observin g May 23 as the “next significant date” in the timeline for developments.

New Entrants in the ETH ETF Race

Before January’s postponement of BlackRock’s ETF proposal, the SEC had also extended its decision timeframe for Fidelity’s proposed ETF. Following this, other contenders for spot ETH ETFs have updated their proposals to incorporate specific terminology, including aspects of staking.

Ark 21Shares recently revised its documentation for the proposed fund. It integrated mentions of staking, albeit in brackets, signaling an intention to expand on this before speaking with the regulatory body. Scott Johnsson, a general partner at Van Buren Capital, remarked on the significance of this provisional addition at the time.

In February, Franklin Templeton entered the ETH ETF arena. The company distinguished its proposal by including staking language without the brackets used by Ark 21Shares. This, therefore, could indicate a more definitive approach to this aspect of their proposal.

BlackRock Seeks to Expand Bitcoin ETF Holdings for Income Fund

According to recent filings  with the SEC, BlackRock has initiated a new application to acquire additional Bitcoin ETFs. The investment giant aims to leverage these new ETFs within its Strategic Income Opportunities Fund.

The filing says:  

“The Fund may acquire shares in exchange-traded products (“ETPs”) that seek to reflect generally the performance of the price of Bitcoin by directly holding Bitcoin (“Bitcoin ETPs”), including shares of a Bitcoin ETP sponsored by an affiliate of BlackRock.”

BlackRock’s existing Spot BTC ETF stands out as the market’s top performer, sparking an increased demand for Bitcoin ETFs. On Monday, the total trading volume of Bitcoin ETFs reached $5.4 billion, marking its second-highest trading day since the ETF’s inception. The trading volume for BlackRock’s ETF alone reached $2.41 billion.

The Strategic Income Opportunities Fund , as described by BlackRock, employs a flexible bond strategy aimed at delivering investors appealing income, returns, and substantial portfolio diversification. The fund focuses on capital preservation. With the anticipated addition of new BTC ETFs, BlackRock aims to further enhance the fund’s offerings to its clients, bolstering its appeal as a robust investment product.

 

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