Ethereum ETF may be approved, BlackRock's 10-year streak of approvals continues?
The U.S. Securities and Exchange Commission could approve a spot Ethereum ETF as early as this week, marking a major shift in regulatory stance.
Bloomberg analysts Eric Balchunas and James Seyffart cited recent rumors and the SEC's request to amend 19b-4 filings by 10 a.m. on Tuesday, raising its chances of approval from 25% to 75%.
This rapid development has led to a scramble for applicants, including major players such as BlackRock, Grayscale and Fidelity.
BlackRock, the world's largest asset manager, has a good track record with the U.S. Securities and Exchange Commission (SEC), having only rejected one ETF application in 2014. That ETF, the BlackRock Total Return ETF, was initially rejected due to concerns about transparency and consistency with its net asset value.
However, an updated version of the ETF went live in December 2023, a month before the Bitcoin ETF was approved, addressing the SEC's concerns. This history highlights BlackRock's ability to successfully navigate regulatory challenges.
The SEC's decision on the Ethereum ETF is highly anticipated as various application deadlines approach. Bloomberg Terminal data shared by James Seyffart lists ETFs awaiting approval
Including ETFs from VanEck, ARK 21Shares, Hashdex, Grayscale, Invesco Galaxy, Fidelity, Franklin, and Bitwise. These applications have faced multiple delays, but recent pushes to amend the applications suggest a potential breakthrough.
ETF Applicants Bloomberg Terminal (James Seyffart)
Grayscale and BlackRock have been actively updating their applications. Grayscale filed an S-3 registration statement to convert its existing Ethereum Trust to a spot ETF and an S-1 to convert to a mini Ethereum ETF.
BlackRock’s amendment to its 19b-4 filing with Nasdaq proposes cash-based creations and redemptions, in line with other Ethereum ETF applications and previously approved Bitcoin ETFs.
The SEC’s cautious approach was influenced by concerns about market manipulation and the need for comprehensive market data for Ethereum. However, a spot Bitcoin ETF was approved earlier this year following Grayscale’s victory in court
and the launch of a spot Ethereum ETF in Hong Kong, sparking hopes for a similar product for Ethereum. The SEC’s recent interactions with ETF issuers have been described as one-sided, with agency staff refusing to make substantive comments, leading to speculation that a rejection is likely.
Despite these challenges, the crypto community remains optimistic, with Ethereum up 17% in the past 24 hours. Approval of a spot Ethereum ETF would provide investors with a regulated and accessible way to gain exposure to Ethereum, potentially increasing market liquidity and stability.
The involvement of high-profile asset managers such as BlackRock and Fidelity adds credibility to these products, which could attract institutional investors and drive further crypto adoption.
While there are no guarantees, BlackRock’s storied history of overcoming regulatory hurdles and getting products approved suggests the odds are in their favor this week. Approval of an Ethereum ETF would mark a new era of mainstream integration for cryptocurrencies.
The post Spot Ethereum ETF to be approved tomorrow, maintaining BlackRock’s 10-year streak of approvals appeared first on CryptoSlate.
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