The SEC seeks public input on BlackRock's updated proposal for an Ethereum ETF, shifting to cash trading from asset swaps. This follows discussions last year and contrasts with staking provisions in other firms' plans.
The Securities and Exchange Commission (SEC) is inviting public feedback on BlackRock's updated proposal to launch an Ether spot exchange-traded fund (ETF). Nasdaq has revised the proposal to facilitate cash trading instead of asset swaps. The SEC has confirmed its plan to solicit comments on the proposed rule change, covering key aspects highlighted in the amendment.
BlackRock Changes Plan
BlackRock's revised filing marks a departure from its original plan, opting for a cash redemption model instead of direct involvement with Ether. This adjustment reflects discussions held with the SEC last year concerning spot Bitcoin ETFs.
Notably, the absence of staking provisions in the amendment diverges from approaches taken by other firms such as Fidelity and Grayscale.
Despite several firms, including BlackRock and Fidelity, pursuing spot Ethereum ETFs, optimism regarding their approval has diminished. Bloomberg ETF analyst Eric Balchunas has lowered his estimate of approval likelihood for May from 70% to 25%.
Looking Ahead: Moreover, the SEC's extension of decision timelines for other proposals underscores the regulatory hurdles ahead.
