Fidelity's Ethereum Spot ETF Faces SEC Delay; Anticipated Decisions Remain Set for May

On January 18, the U.S. Securities and Exchange Commission (SEC) announced a postponement in its verdict regarding Fidelity’s proposed Ethereum ETF. This decision revolves around a proposed rule amendment enabling Cboe BZX to list and trade shares linked to Fidelity’s forthcoming fund.

The regulatory body highlighted that the initial filing for the rule change occurred on November 17, 2023, and was open for public commentary after being published in the federal register on December 6, 2023.

Originally, the SEC was obligated to make a determination—whether to approve, reject, or initiate proceedings for disapproval—by January 20, based on those specified dates. However, invoking a provision allowing a 45-day extension, the SEC has pushed the deadline to March 5, 2024.

There is speculation that the SEC is inclined to initiate proceedings regarding Fidelity in March, mirroring its approach to certain other pending funds.

SEC Verdict on Ethereum ETFs Set for May
Bloomberg’s ETF analyst, James Seyffart, commented today, expressing that the delay in Fidelity’s decision was entirely anticipated, emphasizing the significance of late May deadlines. This timing appears linked to the SEC’s obligation to either approve or reject VanEck’s competing spot Ethereum ETF proposal by May 23.

With proceedings already initiated on VanEck’s application, the SEC is bound by this deadline and cannot further postpone its decision. Given the SEC’s tendency to approve similar ETFs concurrently, it is probable that judgments on all outstanding spot Ethereum ETFs will be made in late May, despite differing application deadlines.

It is noteworthy that both Fidelity and VanEck, along with other applicants, secured approval for spot Bitcoin ETFs on January 10. However, the success of Bitcoin ETFs doesn’t guarantee approval for Ethereum ETF proposals.
Public sentiment varies, with one Polymarket prediction market currently indicating a 54% likelihood of spot Ethereum ETF approvals.

Learn from market wizards: Books to take your trading to the next level.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Lawrence Gash

• 

  Felipe Erazo

• 

  The Banned Blogger

• 

  Long Over Short