BlackRock Calls on SEC to Ensure Fair Competition for ETFs

• BlackRock has directly challenged the SEC’s stance on spot crypto ETFs.
• BlackRock has argued that the SEC’s preference for specific actions is irrelevant.
• Analysts have foreseen a 90% likelihood of SEC approval for a spot crypto ETF.

As the market gains momentum and enthusiasts keenly observe the ebb and flow, the buzz around the prospect of a Bitcoin spot ETF looms large, poised to be the next catalyst propelling us towards unprecedented all-time highs.

BlackRock’s Shot at the SEC

BlackRock has thrown down the gauntlet to the SEC, challenging the perceived disparity in treatment between spot-crypto ETFs and their futures counterparts. In a move that raised eyebrows, BlackRock’s bid for an Ethereum ETF gained validation, directly questioning the SEC’s reluctance to greenlight spot crypto ETFs while embracing their futures equivalents.

The SEC’s hesitancy to approve spot-crypto ETFs stems from a perceived regulatory robustness and enhanced protective measures associated with futures ETFs.

BlackRock contends that the SEC’s inclination towards specific actions holds no water in the realm of Ethereum-based ETFs. According to the financial giant, both futures and spot ETFs draw from the same foundational market.

No Logical Basis for Denying Ethereum ETF

A notable argument presented by BlackRock is that, given the SEC’s confidence in the market surveillance conducted by the Chicago Mercantile Exchange, there is no logical basis for denying the application for an Ethereum spot ETF.

Market analysts are anticipating a potential breakthrough, speculating that the SEC might give the nod to a spot crypto ETF in the near future. Bloomberg experts are notably optimistic, pegging the likelihood at a substantial 90%, possibly materializing before the onset of January 10 next year.

On the Flipside

• Spot-crypto ETFs and their futures counterparts indeed share a common underlying market. However, this doesn’t automatically imply identical risk profiles.
• BlackRock’s insistence on treating spot and futures ETFs equally overlook the fact that futures contracts inherently involve a level of abstraction from the underlying asset.
• Analysts predict a 90% approval chance, but it’s not a guarantee. Even if approved, it might not be BlackRock’s ETF that gets the nod.

Why This Matters

With BlackRock’s vast financial influence, this battle becomes emblematic of the broader trend where institutional giants are vying for exposure to digital assets. The resolution could serve as a litmus test for the broader acceptance of crypto by traditional financial powerhouses.

To delve deeper into BlackRock’s pursuit of a spot Ethereum ETF and its impact on ETH prices surpassing $2,000, explore the details here:
BlackRock Eyes Spot Ethereum ETF – ETH Price Soars Past $2K

Curious about the potential significance of a spot Bitcoin ETF approval and what it means for users? Uncover the insights by checking out the full article:
What a Bitcoin Spot ETF Approval Could Signify for Users