The SEC believes it’s best to take more time to decide on the suggested rule change. This extended period allows them enough time to carefully review the proposal and the concerns raised.
The Securities and Exchange Commission (SEC) has decided to give itself more time to decide about Fidelity’s request for a spot Ethereum exchange-traded fund (ETF). The new deadline for the decision is March 5, as per the recent filing on Thursday.
SEC Extends Timeline for Fidelity’s Ethereum ETF Decision
The Securities and Exchange Commission (SEC) has opted to extend the decision-making period for Fidelity’s proposed Ethereum exchange-traded fund (ETF). Citing the need for ample time to assess the proposed rule change and address raised concerns, the SEC has set a new deadline of March 5.
Fidelity submitted the application for the Fidelity Ethereum Fund in November. In their proposal, they referenced a court ruling from the previous year, where judges stated that the SEC had not provided a clear rationale for rejecting spot crypto ETFs while allowing futures-based products.
This extension grants the SEC additional time to deliberate on whether to approve, disapprove, or initiate further proceedings regarding Fidelity’s Ethereum ETF.
SEC’s Delay on Fidelity Ethereum ETF and Industry Speculation
The Securities and Exchange Commission’s (SEC) decision to postpone Fidelity’s Ethereum ETF did not come as a surprise, according to Bloomberg Intelligence ETF analyst James Seyffart. In a post on X, Seyffart mentioned that the anticipated dates to watch are likely in late May.
Last week, the SEC granted approval for 11 spot bitcoin ETFs to commence trading, leading some industry observers to speculate about the potential approval of a spot Ethereum ETF. Fidelity, entering the race alongside BlackRock last year, has been vying for approval for a spot Ethereum ETF. Notably, both companies applied for spot products shortly after the launch of ether futures ETFs.
Stuart Barton, co-founder at Volatility Shares, interpreted the SEC’s decision on bitcoin ETFs as an indication that they view ether similarly. He suggested that the approval of futures-based ETFs implies a parallel consideration for ether, indicating a perspective that doesn’t treat it as a security and signals a different regulatory approach.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News
Author
