SEC Delays Ethereum ETF Submission From BlackRock

BlackRock submitted a proposal for Ethereum ETF but was postponed by US regulator SEC. (Photo; Doc. Bitcoin Sistemi)

JAKARTA - BlackRock, the world's largest asset manager, filed a request to launch an Ethereum ETF called the iShares Ethereum Trust in November last year. This product aims to be listed on the Nasdaq stock exchange and offers investors access to the price of Ethereum, the world's second largest cryptocurrency.

However, BlackRock's plans face problems from US market regulator Securities and Exchange Commission (SEC), which has yet to give approval for Ethereum's ETF. The SEC has postponed its decision several times, lastly on March 4, along with delays for other Ethereum ETFs submitted by Fidelity.

The SEC's delay poses uncertainty in the crypto market, which is experiencing a sharp rise. Bitcoin, the largest cryptocurrency, just set a new record of over $69,000 on March 5, driven by interest from institutional and retail investors.

Ethereum, which is a platform for decentralized applications (dApps) and smart contracts, is also following in Bitcoin's footsteps by hitting an all-time high of over $ 3,000 (IDR 47 million) on February 20. Ethereum also has the support of technical developments, such as the Dencun upgrade which is expected to increase network scalability and efficiency.

With the favorable market conditions as it is today, many analysts and observers predict that Ethereum's ETF will soon receive the green light from the SEC. One of them is James Seyffart, an ETF analyst at Bloomberg, who said that May 23 would be a crucial moment for Ethereum ETF.

On that date, the SEC will have to make a final decision on the Ethereum ETF application submitted by VanEck, one of the leading US investment companies. If the SEC approves VanEck's petition, then it is likely that other Ethereum ETFs will also get approval.

Ethereum ETF Request Remains High

Ethereum ETF is an investment product that mimics the price of Ethereum by using futures contracts (futures) or physical digital assets. ETF Ethereum allows investors to get exposure to Ethereum without having to buy or store crypto directly.

Ethereum's ETF is considered an easier, safer, and cheaper way to invest in Ethereum, especially for institutional investors who have high regulatory standards and compliance. Ethereum's ETF can also increase Ethereum's market liquidity and transparency.

Demand for Ethereum ETF remains high amid SEC delays. Several other countries, such as Canada and Brazil, have launched the world's first Ethereum ETF, attracting global investors. If ETF Ethereum could be listed in the US, the crypto market could witness even greater capital inflows.