Sec Delay

BlackRock's Ethereum ETF Delayed

SEC Delay

The Securities and Exchange Commission (SEC) has once again delayed BlackRock's application for an exchange-traded fund (ETF) that would track the price of Ethereum. The delay marks the second time the SEC has postponed its decision on the proposal.

ETF Holdings and Applications

The proposed ETF, which would be BlackRock's first crypto-related product, would hold Ethereum's native token, Ether (ETH). The SEC has been scrutinizing the application since October 2022, citing concerns about potential market manipulation and the lack of a transparent and regulated market for Ethereum.

In addition to BlackRock's application, the SEC has received several other applications from other asset managers for Ethereum ETFs. VanEck, Fidelity, Franklin Templeton, Grayscale, Bitwise, and ARK Investment Management have all filed applications with the SEC for similar products.

Market Confidence

Despite the delays, BlackRock remains optimistic about the long-term prospects for Ethereum and other crypto assets. The firm has been actively involved in the digital asset space, launching a private trust for Bitcoin and other cryptocurrencies in 2021.

The SEC's ongoing review of BlackRock's ETF application reflects the agency's cautious approach to the regulation of crypto assets. The SEC has been seeking to balance the potential benefits of making crypto more accessible to investors with concerns over market volatility and consumer protection.