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The History Repeats Itself: The SEC Postpones the Decision on BlackRock's Ethereum ETF Application to March

Here we go again! SEC puts the decision on BlackRock's Ethereum ETF on the backburner

In a move that has caught the attention of the cryptocurrency community, the U.S. Securities and Exchange Commission (SEC) has extended its review period for BlackRock's proposed spot Ethereum exchange-traded fund (ETF). Originally filed in November as the iShares Ethereum Trust, BlackRock's ETF proposal is a significant indicator of mainstream financial interest in cryptocurrencies. 

According to a recent filing, the SEC has postponed its decision to March, stating the need for additional time to thoroughly evaluate the proposal and its implications. This development aligns with similar delays faced by Fidelity's Ethereum Fund, reflecting a cautious approach by the SEC.

The postponement of BlackRock's Ethereum ETF decision to March 10 represents a significant moment for the investment giant and the wider cryptocurrency market. The SEC's extension indicates a careful consideration of the iShares Ethereum Trust, a potential game-changer in crypto investment vehicles. Meanwhile, Fidelity's similar application for its Ethereum Fund has also encountered a delay, as noted in a recent filing.

Bloomberg Intelligence ETF analyst James Seyffart offered insights into the ongoing delays, suggesting that such postponements may become a recurring theme in the near future. 

"Spot Ethereum ETF Delays will continue to happen sporadically over the next few months. The next date that matters is May 23rd," 

Seyffart remarked, highlighting a crucial upcoming milestone for the crypto ETF sector.

Crypto community's reaction and future expectations

The crypto community remains divided in its outlook following the SEC's delay of BlackRock's Ethereum ETF proposal. Experts in the field are expressing a mix of optimism and skepticism about the likelihood of a spot Ether ETF emerging soon. This uncertainty is especially pronounced after the SEC's recent approval of spot Bitcoin ETFs, which has raised expectations for Ethereum-based products.

SEC Chair Gary Gensler's recent comments have added to the speculative atmosphere. He emphasized the unique treatment of bitcoin exchange-traded products, cautioning against broad assumptions regarding other crypto-linked ETFs. 

Gensler stated: 

"That which we did with regard to bitcoin exchange traded products is cabined to this one commodity non-security and shouldn't be read to be anything other than that."