The SEC’s Delay on Fidelity’s Ethereum ETF
The Securities and Exchange Commission has moved the Ethereum ETF’s date from January 20, 2024, to March 5, 2024, indicating its intention to designate a longer period.
Was the Delay Expected?
Industry analysts had expected the delay after the SEC approved the Bitcoin ETF in anticipation of an Ethereum ETF. Bloomberg’s senior analyst, Eric Balchunas, mentioned that a 70% chance of approval was expected in May.
What if the Ethereum ETF has been Approved?
If the Ethereum ETF had been approved, it would have integrated Ethereum-based investments into mainstream financial markets, allowing investors to trade shares on traditional stock exchanges. This would offer indirect exposure to the crypto market and appeal to those seeking diversified investment options.
The delay provides the SEC with adequate time to review proposed rule changes and address investor protection matters.
Hot Take: The Benefit of the Delay
Fidelity’s Ethereum ETF proposal offers investors a new opportunity which the SEC has shown an interest in. The delay will enable thorough consideration of the proposal and its broader impact on the market.
By
By
By
By
By