SEC Extends Decision-Making Process for Fidelity’s Ethereum ETF
The United States Securities and Exchange Commission (SEC) has announced that it will extend the review period for Fidelity’s proposed Ethereum exchange-traded fund (ETF). The SEC needs more time to consider the proposed rule change and the issues raised. The decision date for the Fidelity Ethereum Fund has been moved to March 5, 2024.
Fidelity Ethereum Fund Filed Under Cboe BZX Exchange
The Fidelity Ethereum Fund is filed under the self-regulatory organization Cboe BZX Exchange, Inc. It seeks to trade shares under Commodity-Based Trust Shares. The proposal was published for comment on December 6, 2023, and now awaits a thorough review by the SEC.
Analysts Expect Late May to Be Crucial
Analyst James Seyffart expressed no surprise at the SEC’s decision to extend the review period for the Fidelity Ethereum ETF. He believes that late May will be a critical period for ETF approvals, specifically referencing VanEck’s Ether ETF and its final deadline of May 23.
Ethereum ETF Approval Chances
While some analysts are hopeful about the approval of multiple spot Ether ETFs by May, skepticism remains. Bloomberg’s Eric Balchunas projects a 70% likelihood of an Ethereum spot ETF approval in May. Digital asset lawyer Joe Carlasare is confident in the eventual approval of an Ethereum spot ETF within the year, citing factors such as ETH futures trading on the CME and similar surveillance sharing agreements to BTC futures.
Nate Geraci, President of the ETF Store and co-founder of the ETF Institute, believes that a spot ETH ETF approval requires CME-traded ether futures, a CME-traded ether futures ETF approval, a Grayscale court victory, and a spot bitcoin ETF approval. According to Geraci, all these components are already in place.
However, Will Clemente III notes caution, referring to a statement by SEC Chairman Gary Gensler that BTC is the only crypto commodity. This suggests lower expectations for an ETH ETF approval. At the time of writing, ETH is trading at $2,470.
Hot Take: SEC Extends Review Period for Fidelity’s Ethereum ETF
The SEC has decided to extend the review period for Fidelity’s proposed Ethereum exchange-traded fund (ETF), allowing more time for consideration of the proposed rule change and related issues. The decision date has been pushed back to March 5, 2024. Analysts have varying opinions on the chances of an Ethereum spot ETF approval, with some expressing optimism based on factors such as ETH futures trading and previous approvals. However, caution remains due to statements by SEC Chairman Gary Gensler indicating a focus on Bitcoin as the only crypto commodity. The outcome of the Fidelity Ethereum ETF remains uncertain, but it will be interesting to see how the SEC’s decision-making process unfolds in the coming months.
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