The SEC Delays Decision on Fidelity’s Ethereum ETF Proposal

The SEC Delays Decision on Fidelity’s Ethereum ETF Proposal

The U.S. Securities and Exchange Commission (SEC) recently announced that it has delayed its decision on Fidelity’s proposed spot Ethereum ETF. This decision pertains to a proposed rule change that would permit Cboe BZX to list and trade shares of Fidelity’s planned fund. Originally filed on November 17, 2023, the proposed rule change was published for comment in the federal register on December 6, 2023. The SEC stated that it was initially required to approve, reject, or institute proceedings determining whether to disapprove the proposed rule change by January 20. However, it has now opted to extend the deadline to March 5, 2024, using a provision that allows for such an extension. It is expected that the SEC will institute proceedings regarding Fidelity in March, similar to other pending funds. According to Bloomberg ETF analyst James Seyffart, the delay in Fidelity’s proposal was “completely expected,” and emphasized that deadlines in late May are crucial.

The mentioned May deadline is associated with VanEck’s competing spot Ethereum ETF proposal, which the SEC must either approve or reject by May 23. Since the SEC has already initiated proceedings on VanEck’s application, it cannot further delay its decision. Additionally, as the SEC typically approves similar ETFs together, it is likely that it will decide on all pending spot Ethereum ETFs in late May, despite having different deadlines for other applications. However, it should be noted that even though Fidelity, VanEck, and several other applicants obtained approval for spot Bitcoin ETFs on January 10, this success does not guarantee approval for Ethereum ETF proposals. The approval of Bitcoin ETFs does not necessarily indicate the same outcome for Ethereum ETFs.

Market Data for Ethereum

As of now, Ethereum occupies the second position in terms of market capitalization. Over the past 24 hours, the price of ETH has declined by 2.47%. Its market capitalization stands at $295.94 billion, with a 24-hour trading volume of $11.91 billion. To gain further insights into Ethereum, please refer to additional resources regarding ETH.

The global cryptocurrency market is currently valued at $1.63 trillion, with a 24-hour trading volume of $63.06 billion. Bitcoin dominance accounts for 49.61% of the overall market.

The SEC’s decision to delay Fidelity’s proposed spot Ethereum ETF creates uncertainty and prolongs the wait for investors seeking exposure to Ethereum through ETFs. The extension of the decision deadline suggests that the SEC requires more time to evaluate the risks and benefits associated with such ETFs. Moreover, the pending decision on VanEck’s competing proposal adds to the anticipation surrounding the May deadline, as the SEC usually addresses similar ETFs simultaneously. As the cryptocurrency market continues to evolve, market participants eagerly await the SEC’s rulings on Ethereum ETFs and monitor the impact on the overall market.

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