SEC Plans to Reject Spot Ethereum ETF Proposals by Classifying Ether as a Security
Analysts have uncovered details from a March filing with the United States Securities and Exchange Commission (SEC) suggesting that the regulator may be considering classifying Ether as a security.
On May 13, Davis Polk and Wardwell Associate Scott Johnsson reviewed a March 4 filing from BlackRock concerning its application to list and trade a spot Ether exchange-traded fund (ETF) on the Nasdaq.
The filing postponed the SEC’s decision deadline on BlackRock’s spot Ether ETF to June, while also seeking public feedback on whether the investment vehicle should be classified as a commodity.
Johnsson noted that the potential objective of the filing is “to potentially deny on the basis that these spot filings are improperly filed as commodity-based trust shares and do not qualify if they are holding a security.”
