SEC delays decision on Fidelity spot Ethereum ETF until March

adminJanuary 21, 2024

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The U.S. Securities and Exchange Commission (SEC) announced on January 18 that it had postponed the decision deadline on Fidelity’s proposed spot Ethereum ETF (exchange-traded fund) to March 5. filing.

“The Commission has determined that it is appropriate to specify a longer period of time to act on the proposed rule change and the issues it raises,” the SEC said. This, he added, “allows the SEC sufficient time to consider the proposed rule changes and the issues raised therein.”

Fidelity applied for the Fidelity Ethereum Fund last November, citing a landmark 2023 court ruling in which a judge said the SEC had allowed futures-based products but the regulator had failed to provide a coherent reason as to why it should block spot ETFs. . The SEC’s actions were called “arbitrary and capricious.”

fidelity #Ethereum The ETF was just postponed. Totally expected. The really important date, in my opinion, is the end of May. https://t.co/8mvhcPRaS7
— James Seyff (@JSeyff) January 18, 2024

SEC expected to delay Ethereum ETF decision

Bloomberg Intelligence ETF analyst James Seyffart said at Seyffart predicted that this is when the spot ETH ETF will enter the cryptocurrency market.

In an interview with The Block on December 15, Seyyfart stated that he believes the SEC has already recognized ETH as a commodity. As a result, he believes this makes approval of a spot ETH ETF “likely” by the end of May this year.

This timeline is the deadline for some of ETH. ETF Applications including ARK, 21Shares and VanEck are scheduled to launch between May 23 and 24.

However, analysts say the SEC ETH ETF It’s a very different product. For example, Seyyfart said the ETH futures market is not as strong or institutionalized as Bitcoin.

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