Crypto News- The U.S. Securities and Exchange Commission (SEC) has granted an extension for the decision on Fidelity’s proposed spot Ethereum ETF, setting a new deadline for March 5, according to a filing released on Thursday. The SEC’s rationale for the delay is to afford ample time for a thorough evaluation of the proposed rule change and the associated considerations.
SEC Postpones Fidelity Spot Ethereum ETF Verdict to March
ETF analyst James Seyffart of Bloomberg Intelligence expressed minimal surprise at the delay, asserting its predictability. He underscored that pivotal developments are likely to unfold in late May. Fidelity entered the scene in November 2023 by submitting its application for a spot Ethereum ETF, joining the ranks alongside industry giants like BlackRock, Ark Invest/21shares, and VanEck.
SEC Delays Fidelity’s Ethereum ETF Decision Amid Regulatory Complexity
Seyffart’s counterpart, Eric Balchunas, conveyed optimism regarding the approval of an Ethereum ETF in 2024, estimating a 70% likelihood of approval by May. Balchunas highlighted the SEC’s predicament arising from the approval of Ethereum futures ETFs and the subsequent legal implications tied to Bitcoin futures ETF approval.
In the aftermath of the SEC’s recent greenlighting of multiple spot Bitcoin ETFs, SEC Chair Gary Gensler acknowledged altered circumstances. He clarified that the approval was specific to Exchange-Traded Products (ETPs) holding the non-security commodity, Bitcoin. Gensler stressed that the approval doesn’t signal a predisposition to endorse listing standards for crypto asset securities or dictate the SEC’s stance on other crypto assets within federal securities laws.
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