{"id":10121,"date":"2024-01-25T11:34:38","date_gmt":"2024-01-25T09:34:38","guid":{"rendered":"https:\/\/forklog.com\/en\/sec-delays-decision-on-blackrocks-spot-ethereum-etf\/"},"modified":"2024-01-25T11:34:38","modified_gmt":"2024-01-25T09:34:38","slug":"sec-delays-decision-on-blackrocks-spot-ethereum-etf","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/sec-delays-decision-on-blackrocks-spot-ethereum-etf\/","title":{"rendered":"SEC Delays Decision on BlackRock&#8217;s Spot Ethereum ETF"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>The SEC has postponed its decision on BlackRock&#8217;s spot Ethereum ETF application until March 10.<\/li>\n<li>SEC Chair Gary Gensler reminded that the approval of a spot Bitcoin ETF was limited to just one cryptocurrency.<\/li>\n<li>Optimistic experts anticipate Ethereum ETF approval in May with a 50-70% probability, while skeptics point to regulatory resistance.<\/li>\n<\/ul>\n<\/div>\n<p><span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span><a href=\"https:\/\/www.sec.gov\/files\/rules\/sro\/nasdaq\/2024\/34-99419.pdf\"> has postponed<\/a> its decision on BlackRock&#8217;s spot Ethereum ETF until March 10. The agency&#8217;s head, Gary Gensler, urged against creating hype around the instrument, citing the &#8220;limited&#8221; registration of a similar Bitcoin-based product, according to<a href=\"https:\/\/www.theblock.co\/post\/274333\/gensler-says-secs-move-to-approve-spot-bitcoin-etfs-was-limited-despite-excitement-about-possible-ethereum-etfs\"> The Block<\/a>.<\/p>\n<p>The official explained that the <a href=\"https:\/\/u1f987.com\/en\/news\/sec-approves-all-11-spot-bitcoin-etf-applications\">January decision<\/a> was limited to one cryptocurrency and &#8220;should not be seen as anything else.&#8221;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;What we did regarding the Bitcoin ETF pertains to this single commodity, which is not a security,&#8221;<\/em> he explained.<\/p>\n<\/blockquote>\n<p>The Commission justified the delay on BlackRock&#8217;s proposal by citing the need for &#8220;sufficient time to consider the proposed rule change and the issues raised therein.&#8221;<\/p>\n<h2 class=\"wp-block-heading\"><strong>Target Date \u2014 May 23<\/strong><\/h2>\n<p>Bloomberg analyst James Seyffart predicted a similar scenario by May 23. The final deadline &#8220;matters,&#8221; he added.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. Next date that matters is May 23rd <a href=\"https:\/\/t.co\/2zBBvHkrVk\">https:\/\/t.co\/2zBBvHkrVk<\/a><\/p>\n<p>\u2014 James Seyffart (@JSeyff) <a href=\"https:\/\/twitter.com\/JSeyff\/status\/1750247415137833151?ref_src=twsrc%5Etfw\">January 24, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Experts surveyed by<a href=\"https:\/\/www.theblock.co\/post\/274312\/crypto-experts-predict-whether-a-spot-ethereum-etf-will-get-approved-in-2024\"> The Block<\/a> were divided on the prospects of SEC approval for a spot Ethereum ETF.<\/p>\n<p>The publication recalled the lack of consensus on the registration of a similar digital gold-based product in January (three votes against two) and the regulator&#8217;s head stating that the decision &#8220;does not signal the Commission&#8217;s readiness to approve listing standards for securities with crypto assets.&#8221;<\/p>\n<p>Currently, representatives of <span data-descr=\"traditional finance\" class=\"old_tooltip\">TradFi<\/span> consider the approval of a spot Ethereum ETF unlikely, while the community expresses cautious optimism. The latter points to similarities with the process of <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-etf-issuers-submit-final-amendments-to-sec\">considering<\/a> a Bitcoin-based instrument, according to The Block.<\/p>\n<h2 class=\"wp-block-heading\"><strong>The Optimists&#8217; Camp<\/strong><\/h2>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;We expect a positive verdict in May with a probability of ~75%. The optimistic forecast is based on <\/em><em>Grayscale&#8217;s victory<\/em><em> in the appellate court and the <\/em><em>approval<\/em><em> of an Ethereum futures-based ETF. Together, this suggests that registration is a matter of time,&#8221;<\/em> explained GSR research analyst Matt Kunke.<\/p>\n<\/blockquote>\n<p>The specialist is confident in the &#8220;inevitable&#8221; appeal against a refusal to register the instrument in May if the SEC acts accordingly. In this case, the agency &#8220;will choose the path of least resistance, approving instruments while maintaining a skeptical stance towards other cryptocurrencies.&#8221;<\/p>\n<p>Philip Bechazi, founder and CEO of XBTO, holds a similar view.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;We will see approval this year. Regulated futures on Bitcoin and Ethereum have been launched on <span data-descr=\"Chicago Mercantile Exchange\" class=\"old_tooltip\">CME<\/span>. [\u2026] If market conditions remain strong, there will be further pressure to make the asset available to institutions. Registration is definitely a question of &#8216;when,&#8217; not &#8216;if,'&#8221;<\/em> the expert stated.<\/p>\n<\/blockquote>\n<p>Earlier, Bloomberg analyst Eric Balchunas estimated the chances of product approval by May<a href=\"https:\/\/u1f987.com\/en\/news\/morgan-creek-ceo-skeptical-of-imminent-approval-for-spot-ethereum-etfs\"> at 70%<\/a>. The specialist also<a href=\"https:\/\/cointelegraph.com\/news\/spot-ethereum-etf-next-for-sec-approval-analysts\"> noted<\/a> that it is difficult for him to imagine a scenario where spot Bitcoin ETFs were eventually launched, but spot Ethereum ETFs were not.<\/p>\n<p>Balchunas&#8217; colleague, James Seyffart, expressed slightly less optimism.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;We believe the odds exceed 50%, but we are far less confident than with the Bitcoin ETF. I would say the probability is 60-65%,&#8221;<\/em> he assessed.<\/p>\n<\/blockquote>\n<p><span data-descr=\"Chief Investment Officer\" class=\"old_tooltip\">CIO<\/span> of Bitwise, Matt Hougan, noted certain challenges with approval and agreed that the SEC will eventually take this step.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Ethereum ETF has a clear prospect. In our view, all the components are in place, including the existence of a large and reliable regulated futures market and the existence of futures ETFs. However, Ethereum is more complex than Bitcoin, so the timing is uncertain. I would say there are good chances in 2024, but it&#8217;s not a refusal,&#8221;<\/em> he explained.<\/p>\n<\/blockquote>\n<p>CEO of CF Benchmarks, Sui Chung, suggested trading spot exchange-traded funds based on Ethereum by the end of the year.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;With the launch of Bitcoin ETFs, issuers now know the bar they must meet. The second-largest cryptocurrency by market cap has already reached most key milestones: liquid regulated <span data-descr=\"U.S. Commodity Futures Trading Commission\" class=\"old_tooltip\">CFTC<\/span> futures are traded on CME, with ETFs that invest in these futures,&#8221;<\/em> he reported.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>The Pessimists&#8217; Camp<\/strong><\/h2>\n<p>Pessimists regarding Ethereum ETFs cite the SEC&#8217;s conservatism concerning exchange-traded products based on cryptocurrencies in general.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;We are less optimistic about the potential approval of an Ethereum ETF in 2024. The SEC has made it clear that it views the vast majority of crypto assets as investment contracts subject to securities laws. This excludes them from the structure of exchange-traded products for individual commodities not related to securities,&#8221;<\/em> stated Anthony Scaramucci, founder and managing partner of SkyBridge Capital.<\/p>\n<\/blockquote>\n<p>CEO of Morgan Creek Capital, Mark Yusko, estimated such chances<a href=\"https:\/\/u1f987.com\/en\/news\/morgan-creek-ceo-skeptical-of-imminent-approval-for-spot-ethereum-etfs\"> at less than 50%.<\/a> The specialist noted the SEC&#8217;s hostility towards the industry as a whole.<\/p>\n<p>JPMorgan analyst Nikolaos Panigirtzoglou<a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-dips-below-43000-amid-etf-criticism\"> shares<\/a> a similar position.<\/p>\n<p>Analysts from investment bank TD Cowen also <a href=\"https:\/\/u1f987.com\/en\/news\/analysts-doubt-imminent-approval-of-spot-ethereum-etfs\">doubted<\/a> the imminent registration of spot Ethereum ETFs.\u00a0<\/p>\n<p>Earlier, FOX Business predicted the adoption of the instrument by summer 2024.<\/p>\n<p>Previously, BlackRock CEO Larry Fink <a href=\"https:\/\/u1f987.com\/en\/news\/blackrock-ceo-recognizes-value-in-spot-ethereum-etf\">stated<\/a> that he &#8220;sees value&#8221; in spot Ethereum ETFs, calling it a step towards tokenization.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEC has postponed its decision on BlackRock&#8217;s spot Ethereum ETF application until March 10. SEC Chair Gary Gensler reminded that the approval of a spot Bitcoin ETF was limited to just one cryptocurrency. Optimistic experts anticipate Ethereum ETF approval in May with a 50-70% probability, while skeptics point to regulatory resistance. SEC has postponed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10120,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[865,569,46,1150,1138,36,128],"class_list":["post-10121","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blackrock","tag-etf","tag-ethereum","tag-news-plus","tag-opinions","tag-regulation","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"75","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/10121","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=10121"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/10121\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/10120"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=10121"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=10121"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=10121"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}