Posted: Jan 19, 2024 2:34 AM Updated: Jan 19, 2024 2:34 AM
Correction and fact check date: January 19, 2024, 2:34 AM
briefly
The U.S. SEC has extended the deadline for a decision on Fidelity’s proposal for a spot Ethereum ETF to March 5.
The U.S. Securities and Exchange Commission (SEC) has extended the deadline for a decision on financial services company Fidelity’s proposed spot Ethereum exchange-traded fund (ETF) to March 5. The extension gives the SEC additional time to consider whether to approve it. , or initiate the process regarding the proposal.
“The Commission has determined that it is appropriate to specify a longer period for taking action on the proposed rule change to allow sufficient time to consider the proposed rule change and the issues raised by it,” the SEC representative said.
Fidelity submitted its Fidelity Ethereum Fund application in November. In its proposal, the company referenced a previous year’s court ruling in which the justices observed that the SEC did not provide a clear basis for rejecting spot cryptocurrency ETFs while approving futures-based products.
Bloomberg Intelligence ETF analyst James Seyffart noted that the SEC’s decision to delay was expected. He later shared his comments on social media platform X.
There is speculation among analysts that the SEC may approve applications for multiple spot Ethereum ETFs simultaneously, mirroring its approach toward spot Bitcoin ETFs.
Fidelity joined industry giant BlackRock in the spot Ethereum ETF race late last year. The ETH futures ETF was launched a month before these companies submitted applications for their spot products.
SEC’s action sparks speculation about Ethereum’s change of direction
The SEC approved the start of trading for 11 spot Bitcoin ETFs last week. These developments have sparked speculation within the industry about whether a spot Ethereum ETF could be the next consideration.
In response to this news, market participants turned their attention to Ethereum. According to OKX market data, Ethereum’s native token, ETH, has witnessed a price surge, reaching a high of $2,644.45 as of January 11 and currently hovering around $2,465 as of this writing.
ETH investors expect the price to likely remain stable, given that the most obvious drivers are not expected in the near term, barring the scheduled Ethereum network upgrade. In other words, it refers to the Ethereum spot ETF.
Currently, BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are among the applicants vying for SEC approval for a spot Ethereum ETF.
Recently, BlackRock CEO Larry Fink expressed positive sentiments about the Ethereum ETF concept in line with the company’s ongoing journey toward tokenization.
In light of the SEC’s decision to extend the deadline for Fidelity’s spot Ethereum ETF proposal, industry analysts anticipate potential simultaneous approval of multiple spot Ethereum ETF applications.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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