ETF Ethereum: SEC delays decision on Fidelity's request

The SEC is playing for time, pushing back its pivotal decision on the proposed Fidelity spot Ethereum ETF to March 5. In a strategic move, the regulator extends the suspense, stating that a longer examination period is necessary to assess this significant initiative. However, an analyst predicts a final verdict by the end of May.

Spot Ethereum ETF: A Deadline Extended to March 5

In November 2023, Fidelity submitted an application for the Fidelity Ethereum Fund, a spot Ethereum ETF. In a document released this Thursday, January 18, the SEC postponed the deadline for making a decision. Believing it is “appropriate to designate a longer period,” the deadline is extended to March 5. This period is required to take action on the proposed rule change, the SEC declared. The Commission now has more time to decide on approval, denial, or to initiate proceedings.

The approval of 11 Bitcoin ETFs by the SEC last week leads to speculation whether the Ethereum ETF will be next. Indeed, Fidelity joined BlackRock late last year in the race for a spot Ethereum ETF. The launch of Ether futures ETFs occurred one month prior to their application. Stuart Barton, cofounder of Volatility Shares, believes that the SEC views Ether in the same light as Bitcoin.

The SEC Should Make a Decision By the End of May

James Seyffart, an ETF analyst at Bloomberg Intelligence, stated on Twitter that this delay was very much expected. He added that the dates that really matter are at the end of May. This deadline could be related to the fact that the SEC must approve or reject a proposal from a competing company.

Fidelity #ethereum ETF delayed just now. Completely expected. Dates that really matter are late May in my view. https://t.co/8mvhcPRaS7

— James Seyffart (@JSeyff) January 18, 2024

Indeed, by May 23, the Commission must have made its decision on the ETF Ethereum request from VanEck. The SEC, having already initiated proceedings regarding this request, can no longer delay its decision. Moreover, it is known that the regulator often approves similar ETFs together. It will probably make a statement on pending Ethereum ETFs at the end of May.

Meanwhile, the price of Ethereum is stabilizing around $2478, approaching a critical support zone at $2400. Despite a slight decrease over the past eight days, Ethereum still registers a 9% increase since the beginning of the year.