TL;DR
- The US SEC delays Fidelity’s quest to launch a spot Ethereum exchange-traded fund (ETF).
- It extended its decision window to March 2023, citing that it will give it appropriate time to consider the rule change and issues raised therein.
SEC Delays Decision Fidelity’s Spot Ether ETF
Fidelity’s quest to launch spot Ethereum exchange-traded fund (ETF) hits a roadblock.
The US Securities and Exchange Commission (SEC) is extending its decision window on Fidelity’s application until March 5, 2024.
If approved, Fidelity’s Wise Origin Ethereum Trust fund would track the performance of Ether.
And allow investors to gain exposure to digital assets without owning them directly.
According to a January 19, 2024 filing, the SEC admitted needing more time to deliberate on this decision.
The SEC finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.
The SEC stated
Fidelity applied for the Fidelity Ethereum (ETH) Fund in November 2023.
Its proposal cited a court ruling where judges admitted the SEC failed to find logical reasons for rejecting spot crypto ETFs.
And simultaneously allow the operation of futures-based products. The regulatory commission now has more time to deliberate and decide whether to approve, disapprove or institute proceedings.
SEC’s Decision Was Widely Expected
According to James Seyffart, Bloomberg ETF analyst, the move to delay Fidelity Ethereum ETF was wholly expected.
He pointed out that the SEC may approve a set of spot Ethereum ETFs as it did with Bitcoin.
He then admitted that the date to watch out for is May 23, 2024. Coincidentally, it is the deadline for the SEC decision on VanEck’s Ethereum ETF application.
Last week, the SEC approved 11 Bitcoin ETFs, allowing them to be traded for the first time in the United States.
Before then, the regulatory commission had rejected all spot Bitcoin ETF applications.
Ether Outshines Bitcoin Following SEC ETF Approvals
Fidelity joined its fellow giant, BlackRock, in the race for a spot in Ethereum ETF. Before these applications, ether futures ETFs went live.
Volatility Shares co-founder Stuart Barton believes that the SEC listing futures-based ETFs is enough to say they’re thinking about Ether similarly.
He added that the SEC thinks they’re not securities and may not regulate them that way.
Meanwhile, Ether’s price outshines Bitcoin’s price after ETF approvals, surging to its all-time high of $2,600 since May 2022.
According to CoinGecko data, Ether has had a downtrend, losing roughly 7% to trade at $2,426 in the past week.
On the other hand, Bitcoin (BTC) has fallen by about 6.4% in the same timeframe to trade at $40,642.
On the upside, Fidelity’ s Bitcoin ETF was among the ETFs that received the green light last week.
It has been doing great on the market, crossing the $1 billion mark to become the second firm to do so.
Will the SEC approve a batch of spot Ethereum ETFs like it did with Bitcoin?
Shawn Munir
Shawn Munir is the CEO of Coinweb.com and spearheads all the collaborative partnerships for the platform. He bought his first Bitcoin in 2017 and never looked back. He is also an investor in 200+ Web3 startups and is considered an expert in the field. Before building Coinweb with his co-founders, he co-founded Presail, a management platform designed for companies and investors to manage their investments in Web 3. In addition to his entrepreneurial endeavors, Shawn serves on the United Nations...
