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SEC Delays Approval for BlackRock’s Ethereum ETF

Crypto | March 5, 2024

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The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision to approve Blackrock's spot Ethereum exchange-traded fund (ETF)

  • A recent regulatory filing revealed that the SEC has postponed its decision on BlackRock's application for a spot Ethereum ETF called iShares Ethereum Trust. This decision marks another setback for the asset manager's efforts to launch a product that would provide investors with direct exposure to Ethereum through a regulated financial instrument.
  • Although the SEC recently approved a number of spot Bitcoin ETFs recently, the SEC's hesitancy to approve cryptocurrency ETFs is not new. The commission has previously rejected spot Bitcoin ETFs, citing concerns over market manipulation, investor protection, and the lack of traditional market surveillance mechanisms in cryptocurrency markets. This cautious approach suggests that the SEC is scrutinizing Ethereum ETF applications with similar concerns, potentially delaying their approval to ensure comprehensive regulatory standards are met.

See:  SEC Greenlights Bitcoin ETFs. Is Ethereum Next?

  • Concentration Risk Concerns: Bloomberg reported concerns from S&P regarding the concentration risks posed by Ethereum ETFs. These concerns reflect the broader debate on the impact of large-scale institutional investments in cryptocurrencies and the potential for market concentration to affect price volatility and liquidity.

Conclusion

While these delays may be frustrating for investors and companies eager to expand the crypto ETF market, they also indicate a careful approach by regulators to understand and address the unique risks associated with digital assets and their networks.

The financial community remains watchful for any signs of progress towards the approval of spot Ethereum ETFs, which would no doubt represent another milestone of the integration of digital assets into the mainstream financial system and growing interest from institutional investors.  The upcoming month of May is tipped to be the period to watch so stay tuned.


NCFA Jan 2018 resize - SEC Delays Approval for BlackRock's Ethereum ETFThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

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