Fidelity's Ethereum ETF Proposal Deadline Extended by SEC

The United States Securities and Exchange Commission ( SEC ) has postponed the decision-making deadline regarding Fidelity’s proposal for a spot Ethereum ETF to March 5. This delay grants the SEC extra time to review the proposal, including whether to approve, deny, or initiate further actions regarding it.

An SEC representative stated, “The Commission believes it is prudent to allow more time to evaluate the proposed rule change and the issues it presents.” 

Fidelity initially submitted its application for the Fidelity Ethereum Fund back in November. In their proposal, they cited a prior court decision where judges noted that the SEC had failed to provide a robust justification for rejecting spot crypto ETFs while allowing those tied to futures.

Bloomberg Intelligence ETF expert James Seyffart acknowledged that the SEC's decision to postpone was anticipated, sharing his thoughts on the social media platform X. 

Analysts suggest that the SEC might consider approving multiple spot Ethereum ETF applications at once, similar to their previous handling of spot Bitcoin ETFs. 

Fidelity is now part of the race for a spot Ethereum ETF, joining forces with industry titan BlackRock from last year. Notably, just a month prior to these firms submitting their applications for spot ETFs, Ethereum futures ETFs had already been launched.

SEC Moves Ignite Speculation Around a Potential Ethereum Approval

The SEC granted approval The SEC recently gave the go-ahead for 11 spot Bitcoin ETFs to start trading, sparking discussions in the industry about whether a spot Ethereum ETF could be next on the agenda. 

Reacting to this news, investors began shifting their focus back to Ethereum. The native cryptocurrency, ETH, observed a price jump, reaching highs of $2,644.45 on January 11, and currently hovering around $2,465 as per OKX market statistics.

ETH investors are hopeful for price stabilization, particularly as the most significant catalyst—the expected Ethereum spot ETF—does not seem to be on the immediate horizon. network upgrades Currently, BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are competing for SEC approval of their spot Ethereum ETF applications. 

Recently, BlackRock's CEO Larry Fink expressed his positive views regarding the idea of an Ethereum ETF, reinforcing the company's ongoing commitment to tokenization.

With the SEC's recent extension of the deadline for Fidelity's Ethereum ETF proposal, industry experts are looking at the potential for multiple simultaneous approvals of various spot Ethereum ETF applications. positive sentiments Securities and Exchange Commission

, please remember that the information presented here is not intended to be taken as legal, tax, investment, financial, or any other form of advice. It is critical to only invest what you can afford to lose and seek independent financial guidance if you’re uncertain. For additional details, we encourage you to review the terms, conditions, and help sections provided by the issuer or advertiser. MetaversePost strives for precise and unbiased reporting, yet market conditions can change without notice.