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SEC Seeks Public Comments on BlackRock’s Amended Spot ETH ETF Proposal

Published 24/04/2024, 11:15
SEC Seeks Public Comments on BlackRock’s Amended Spot ETH ETF Proposal
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  • The US SEC asked for public comments on BlackRock’s amended Ethereum ETF filing.
  • The comments will be accessible on the SEC’s website after 21 days.
  • The regulator postponed its decision on BlackRock’s application in January.

The United States Securities and Exchange Commission (SEC) has invited public comments on changes made to American firm BlackRock’s proposed spot Ethereum exchange-traded fund (ETF), indicating ongoing deliberations over the highly anticipated financial product.

BlackRock, the world’s largest asset manager, has been competing with other firms like Fidelity to debut an Ethereum ETF in the US. However, optimism regarding the SEC’s approval within the next month has waned, with analysts predicting non-desirable outcomes.

BlackRock initially filed for its spot Ethereum ETF in November 2023, naming it the iShares Ethereum Trust, with the aim to “reflect generally the performance of the price of ether.”

In January, the SEC postponed its decision on BlackRock’s proposal, and on April 19, Nasdaq submitted an amendment to the proposal.

“The Commission is publishing this notice to solicit comments on the proposed rule change, as modified by Amendment No. 1, from interested persons,” stated the SEC in a filing on Tuesday. Comments will be accessible on the SEC’s website and are due within 21 days, as the agency specified.

In the amended filing, Nasdaq discussed the ETF’s creation and redemption process, noting that “baskets are only issued or redeemed in exchange for an amount of cash determined by the Trustee on each day that Nasdaq is open for regular trading.” This contrasts with the original filing from November, which proposed a process involving ETH.

As reported earlier, according to Jim Cramer, the host of Mad Money on CNBC, the approval of a spot ETH ETF in the US is not far and will “soon bloom.”

On the other hand, SEC Commissioner Hester Pierce said a spot ETH ETF application may see approval without court intervention, like in the case of Grayscale.

The post SEC Seeks Public Comments on BlackRock’s Amended Spot ETH ETF Proposal appeared first on Coin Edition.

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