SEC delays decision on Blackrock ether ETF until March

The US stock market watchdog needs more time to evaluate an ethereum-backed fund filed by giant Blackrock in November.

After spot bitcoin ETFs hit the market, will we see spot ether ETFs? To date, 9 cases have been brought before the SEC (Security and Exchange Commission) by the asset manager. This Wednesday, the U.S. exchange watchdog asked for more time to evaluate Blackrock’s filing, called the iShares Ethereum Trust, filed in November. The SEC will decide on March 10 whether to “approve or disapprove” the file.

This request for additional time will allow Blackrock to make certain adjustments to best comply with the SEC’s requirements. As a reminder, Blackrock modified its bitcoin spot ETF portfolio at the last minute, making concessions to the US stockbroker… which turned out to be a win.

While ether jumped in mid-January amid investor hopes for the arrival of spot ether ETFs, more and more experts are concerned about such a scenario. This is reflected in the price of Ether, which loses 13% in one week.

Confusion over the legal status of ether

“What we’ve done with respect to bitcoin ETFs is limited to this single unhedged commodity and should not be interpreted differently,” SEC chief Gary Gensler recently said, as reported by The Block.

As a reminder, Bitcoin is the only cryptocurrency that the SEC considers a “commodity” and therefore does not fall under its jurisdiction. However, the SEC did not rule on the ether case, maintaining a certain vagueness that was criticized by many members of the crypto ecosystem.

Before January 10th The SEC has only approved bitcoin futures ETFs (as of 2021), but not spot bitcoin ETFs (spot), while futures contracts are more difficult to manipulate because the market is based on futures prices from the Chicago Mercantile Exchange (CME), regulated by the Commodity Futures Trading Commission (CTFC).

An ETF (or Exchange Traded Fund) is an exchange-traded index fund that tracks the performance of a stock index (or one or more financial or physical assets such as gold) by replicating both increases and decreases in value. the price of that index (or those assets).

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