SEC Postpones Ruling on BlackRock and Fidelity Ethereum ETF Proposals
BlackRock's Spot Ethereum ETF Faces August 7, 2024, Deadline
SEC Expected to Make Final Decision on Ether ETF Applications by May 23
The United States Securities and Exchange Commission (SEC) has postponed its decision on BlackRock's proposed spot Ethereum exchange-traded fund (ETF). The SEC's previous deadline for a decision was March 10, but it has been extended to May 23. The agency also announced that it is extending the deadline for a decision on Fidelity Investments' proposed Ether ETF to June 22.
Spot ETFs are designed to track the price of an underlying asset, such as a cryptocurrency or a commodity. A spot Ethereum ETF would allow investors to gain exposure to Ethereum without having to purchase and store the cryptocurrency directly.
The SEC's decision on BlackRock's ETF proposal has been highly anticipated. Many investors had hoped that the agency would approve the ETF, which would have been the first spot Ethereum ETF in the United States. However, the SEC has expressed concerns about the risks associated with cryptocurrency ETFs, including the potential for fraud and manipulation.
The SEC's decision to delay its ruling on BlackRock's ETF proposal is a disappointment for some investors. However, it is important to note that the agency still has the opportunity to approve the ETF in the future. The SEC's decision on Fidelity's ETF proposal is also still pending.
Comments