BlackRock’s Spot Ethereum ETF Under Review by SEC: Public Commentary Opened
The US Securities and Exchange Commission (SEC) has recently opened the floor for public commentary on the proposed spot Ethereum exchange-traded fund (ETF) by BlackRock. This move follows Nasdaq’s updated proposal on April 19, which aimed to better align with regulatory expectations.
BlackRock’s ETF, named the iShares Ethereum Trust, seeks to track the price of Ethereum accurately. Originally filed in November 2023, the proposal has undergone modifications, particularly in its creation and redemption processes. The revised proposal now suggests a cash-based transaction model, departing from the direct exchanges with Ethereum in the original version.
This shift to a cash redemption strategy reflects a cautious regulatory approach, similar to discussions surrounding spot Bitcoin ETFs last year. The SEC’s call for input allows stakeholders and the public to influence the final decision, with responses due within 21 days from the announcement.
Despite efforts by entities like Fidelity and Grayscale to revise their Ethereum ETF applications, market analysts remain skeptical. Bloomberg’s Eric Balchunas recently downgraded the probability of Ethereum ETFs gaining approval by May, citing a lack of positive signs or intel.
As the deadline approaches for other cryptocurrency-related decisions, the SEC appears to be taking a methodical approach, emphasizing robust regulatory scrutiny and stakeholder engagement in its decision-making processes. Stay tuned for updates on the outcome of the public commentary and the future of Ethereum ETFs.
