The decision by the U.S. Securities and Exchange Commission (SEC) to approve the BlackRock Ethereum spot exchange-traded fund (ETF) has been postponed. BlackRock submitted an application for an “iShares Ethereum Trust” in November, seeking approval for listing on NASDAQ.
In January, the SEC greenlit nearly a dozen Bitcoin spot ETFs, igniting a surge in trading activity as demand soared. Among these was the BlackRock iShares Bitcoin Trust (ticker symbol: “IBIT”), which quickly amassed $10 billion in assets under management within two months of its launch.
Numerous asset managers, including Franklin Templeton, have followed suit, filing applications for spot Ethereum ETFs with the SEC. This list includes prominent names like Fidelity, Grayscale, VanEck, Invesco, Galaxy, Ark Invests, and 21Shares.
The SEC’s cautious approach to approving crypto ETFs is evident in its delays, as it carefully evaluates the risks and regulatory implications involved. Notably, it took over a decade for the SEC to approve the first Bitcoin spot ETF in 2024, following numerous rejections since the initial filing by the Winklevoss twins in July 2013.
Meanwhile, Ethereum’s position as the second-largest cryptocurrency by market capitalization is underscored by the recent surge in gas fees on its network. The rise in fees, reaching levels not seen since March 2023, is attributed to increased interest in the ERC-404 token standard, driving up transaction costs significantly.