The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision on the approval of spot Ethereum exchange-traded funds (ETFs) proposed by BlackRock and Bitwise.
Initial Deadline
Initially, the SEC had a 45-day review period set to end on September 26, 2024.
New Deadlines
The commission has extended this period to mid-November, with new deadlines set for November 10 for BlackRock and November 11 for Bitwise.
Context and Implications
This delay comes shortly after the SEC approved options trading for BlackRock’s iShares Bitcoin Trust (IBIT) on September 20, 2024, which was seen as a significant win for Bitcoin ETFs. The approval of IBIT has led to a daily inflow of $37.06 million and a total net inflow of $17.74 billion for Bitcoin ETFs. In contrast, Ethereum ETFs have experienced a net outflow of $683.42 million, despite a daily inflow of $3.26 million.
The SEC’s decision to delay is part of a broader trend of cautious regulatory scrutiny over cryptocurrency-related financial products. Nasdaq had initially filed for a rule change for the iShares Ethereum Trust ETF on July 22, 2024, and Bitwise followed suit shortly after. The SEC’s extended review period is intended to allow more time to consider the proposals thoroughly.
This delay highlights the ongoing challenges and regulatory hurdles that cryptocurrency ETFs face in gaining approval.
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