The US Securities and Exchange Commission (SEC) has granted an extension for the review of BlackRock’s proposed iShares Ethereum Trust spot ETF. Initially submitted by The Nasdaq Stock Market on November 21, 2023, the rule change request seeks to provide direct exposure to Ethereum’s price movements. The SEC has moved the decision deadline to March 10, 2024, from the original January 25, 2024, indicating the necessity for additional time to thoroughly assess the proposal and related concerns surrounding a spot Ethereum ETF.
Originally open for public comment on December 11, 2023, the proposal has not yet garnered any public feedback. This extension reflects the SEC’s cautious approach to crypto-based ETFs amidst an evolving regulatory landscape. BlackRock, the world’s largest asset manager, remains at the forefront of incorporating digital assets into traditional investment vehicles. However, the SEC’s hesitancy underscores persistent concerns over crypto product volatility, security, and regulatory compliance. The prolonged review period signifies the SEC’s commitment to a comprehensive evaluation, ensuring potential risks associated with the iShares Ethereum Trust are adequately addressed.