The SEC is playing for time, pushing back its crucial decision on Fidelity’s proposed Ethereum spot ETF until March 5. In a strategic move, the regulator is extending the suspense, declaring that a longer review period is necessary to evaluate this major initiative. However, one analyst predicts a final verdict at the end of May.
ETF Ethereum spot: Deadline extended to March 5
In November 2023, Fidelity filed for the Fidelity Ethereum Fund, a spot Ethereum ETF. In a document published this Thursday, January 18, the SEC extended its deadline to make a decision. Considering that it is “appropriate to designate a longer period”, the deadline is postponed to March 5. This period is necessary to take action on the proposed rule change, said the SEC. The Commission now has more time to decide whether to approve, reject or initiate a procedure.
The SEC’s approval of 11 Bitcoin ETFs last week leads to questions about whether the Ethereum ETF would be next. Moreover, Fidelity joined BlackRock at the end of last year in the race for a spot Ethereum ETF. The Ether futures ETFs went live a month before their request. Stuart Barton, co-founder of Volatility Shares, believes that the SEC views Ether the same way as Bitcoin.
The SEC is expected to make a decision by the end of May
James Seyffart, ETF analyst at Bloomberg Intelligence, declared on that this postponement was entirely expected. He added that the dates that really matter are the end of May. This deadline could be linked to the fact that the SEC must approve or reject the proposal of a competing company.
Indeed, by May 23, the Commission must have made its decision on VanEck’s Ethereum ETF application. The SEC having already initiated proceedings regarding this request, she can no longer delay her decision. In addition, you should know that the regulator generally approves similar ETFs together. She will likely rule on pending Ethereum ETFs at the end of May.
During this time, the price of the Ethereum crypto stabilizes around $2,478, approaching a critical support zone at $2,400. Despite a slight decline over the last 8 days, the Ethereum still records an increase of 9% since the beginning of the year.
Maximize your Tremplin.io experience with our ‘Read to Earn’ program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
