The SEC Delays Decision on Fidelity’s Ethereum Spot ETF
The US Securities and Exchange Commission (SEC) has recently postponed its decision regarding Fidelity Investments’ proposal to launch an Ethereum Spot ETF. Originally scheduled for an earlier date, the SEC has chosen to extend the deadline until March 5th to further examine the proposal and the questions it raises.
“The Commission believes it is appropriate to extend the time for taking action on the proposed rule change in order to provide sufficient time to consider the proposed rule change and the issues raised therein,” stated the SEC.
Fidelity submitted its request for the Ethereum ETF last November. This request is based on a previous judgment where judges criticized the SEC for not providing consistent reasons to reject Spot cryptocurrency-based ETFs, while allowing products based on futures contracts.
Speculations Surrounding Ethereum Spot ETFs
The cryptocurrency industry is closely watching the actions of the SEC, particularly after its recent approval of several Bitcoin Spot ETFs. This decision has sparked speculation about the possibility of an imminent approval for an Ethereum Spot ETF.
Fidelity, along with other major players like BlackRock, is competing to launch such a product. Their efforts are bolstered by the successful launch of Ethereum futures-based ETFs a month prior.
Industry experts, such as Stuart Barton from Volatility Shares, interpret the SEC’s decision to approve futures-based ETFs as a potential sign of its approach towards Ethereum, similar to that of Bitcoin. This perspective suggests less stringent regulation for Ethereum, not considering it as a security.
