SEC Delays BlackRock Spot Ether ETF Until March

SEC’s Extended Timeline Highlights Caution in Focusing on Investor Protection in What Is Often Considered a Complex Innovation and Technology Landscape

The U.S. Securities and Exchange Commission (SEC) extended the review period for consideration of a proposed rule change to list the iShares EtherTrust Spot ETF and designated March 10, 2024 as the new deadline for action, according to a filing today.

The proposal, originally filed by The Nasdaq Stock Market on November 21, 2023, was intended to provide direct exposure to movements in the price of Ether in accordance with Nasdaq Rule 5711(d) with respect to commodity-based trust stocks.Whatsminer Miner

The SEC extended the 45-day review period, which was originally scheduled to end on January 25, 2024, and indicated that it needed additional time to thoroughly consider the proposal and related issues surrounding Ether ETF spot products.

The proposed rule change was originally published for comment on December 11, 2023, and no public comments have been received to date. The longer review period under the Securities Exchange Act of 1934 suggests that the SEC is taking a cautious approach to cryptocurrency-based ETFs in an evolving regulatory environment.Kaspa mining

BlackRock, the world’s largest asset manager, has been at the forefront of integrating digital assets into traditional investment vehicles. However, the SEC’s hesitation reflects ongoing concerns about the volatility, safety and regulatory compliance of crypto products.

Investors and industry experts are closely watching the SEC’s move, as the approval of such ETFs would mark a significant milestone in the mainstream acceptance of cryptocurrencies. The extended review period indicates that the SEC is taking a thorough approach to ensure that any potential risks associated with the iShares Ether Trust are mitigated.