The U.S. Securities and Exchange Commission (SEC) has announced that it will be delaying its decision on Fidelity’s proposed spot Ethereum Exchange-Traded Fund (ETF). This decision revolves around a proposed rule change that would allow Cboe BZX to list and trade the shares of Fidelity’s planned fund. Originally filed on November 17, 2023, and published for comment on December 6, 2023, the SEC stated that it was initially required to approve, reject, or institute proceedings to determine whether to disapprove the proposed rule change by January 20, 2024. However, the SEC has now chosen to extend this deadline by 45 days to March 5, 2024.
SEC’s Delayed Decision
The SEC’s decision to delay the ruling on Fidelity’s proposed spot Ethereum ETF is not unexpected. The Bloomberg ETF analyst, James Seyffart, claims that this delay was “completely expected” and emphasizes that the deadlines in late May hold significant importance. In particular, the SEC must either approve or reject VanEck’s competing spot Ethereum ETF proposal by May 23. As the SEC has already initiated proceedings on VanEck’s application, it is unable to further postpone its decision. Additionally, due to the SEC’s tendency to approve similar ETFs together, it is likely to make a decision on all pending spot Ethereum ETFs in late May, despite other applications having later deadlines.
Cautious Optimism for Ethereum ETFs
While Fidelity, VanEck, and several other applicants have already obtained approval for spot Bitcoin ETFs on January 10, it is important to note that this success does not guarantee approval for Ethereum ETF proposals. Public sentiment is divided, with prediction markets on Polymarket currently indicating a 54% probability of spot Ethereum ETF approvals.
At the time of writing, Ethereum holds the second position by market capitalization, with the ETH price experiencing a 2.47% decline over the past 24 hours. The market capitalization of Ethereum is valued at $295.94 billion, accompanied by a 24-hour trading volume of $11.91 billion. These figures demonstrate the significance and impact of the SEC’s decision on the future of Ethereum in the market.
The global cryptocurrency market currently stands at a valuation of $1.63 trillion, with a 24-hour trading volume of $63.06 billion. Bitcoin dominance remains strong, accounting for 49.61% of the entire market. These numbers provide context for the overall market environment and the potential influence of regulatory decisions, such as the SEC’s ruling on Fidelity’s proposed Ethereum ETF.
The SEC has decided to delay its verdict on Fidelity’s spot Ethereum ETF proposal. The delayed decision aligns with expectations, considering the upcoming deadlines for competing Ethereum ETF proposals. While the approval of Bitcoin ETFs provides optimism, it does not guarantee similar success for Ethereum. Ethereum’s market performance showcases its significance, and the global cryptocurrency market’s numbers highlight the influence of regulatory decisions. As the SEC’s ruling approaches in late May, investors and stakeholders remain eager to witness the outcome and its impact on the crypto market.