BlackRock (BLK) Ether ETF Application Delayed Again

The SEC has again delayed its judgment on BlackRock, Inc.'s BLK spot Ethereum ETF application. BLK's spot Ether ETF application was postponed for the first time in January after the SEC approved spot Bitcoin ETFs.

Due to the delay, the SEC has opened comment periods for the application. The regulator wants to know if the reasons given in favor of spot Bitcoin ETFs (launched on Jan 10, 2024) apply to Ether ETFs.

The SEC also wants feedback on spot Ether ETF manipulation. It also wonders if spot and futures Ether exchange-traded vehicles are identical. The SEC is anticipated to rule on Ether ETF applications by May 23.

In November 2023, BLK filed iShares Ethereum Trust, a spot Ethereum ETF, with the SEC. Ethereum prices rose to their maximum last year before falling.

Note that a spot crypto ETF tracks the market price of the underlying digital asset, allowing investors token exposure without buying it.

The ETF would monitor the spot price of Ethereum, thus investors would invest in Ethereum rather than a company in the Ethereum ecosystem. The SEC rejected crypto investment applications and fined crypto scammers for years, warning of the risks of the unregulated crypto markets.

Investors now see and trade cryptocurrencies differently after the SEC permitted spot Bitcoin ETFs. Franklin Resources, Inc. BEN became the ninth crypto company to request an Ethereum ETF last month. All the spot Ethereum ETF contenders, including BEN, launched spot Bitcoin products in January.

BLK filed for the first spot Bitcoin ETF in June 2023, establishing the stage for Fidelity, Invesco, and WisdomTree to follow. BLK shares rose 19.7% in the past six months, compared to 24.9% for the industry.