SEC Extends Deadline for Fidelity Ethereum ETF Decision
The U.S. Securities and Exchange Commission (SEC) has announced a deadline extension for deciding on Fidelity’s proposal for a spot Ethereum exchange-traded fund (ETF) until March 5. The SEC stated that it requires more time to thoroughly evaluate the proposed rule change and associated issues.
Delay Coincides with Other Leveraged Bitcoin ETF Applications
In addition to the delay for Fidelity’s ETF, the SEC has received five other applications for leveraged Bitcoin ETFs seeking approval. These applications are still under review by the SEC.
SEC Justifies Extension for Fidelity ETF Decision
The SEC justified the extension of the deadline for deciding on Fidelity’s proposed Ethereum ETF, stating that it needs additional time to evaluate the proposal and associated issues thoroughly. Fidelity submitted the application in November, referencing a court ruling that criticized the SEC for rejecting spot crypto ETFs without a coherent reason while permitting futures-based products.
Optimism for Imminent Ethereum ETF Approval
Last week, the SEC approved 11 spot Bitcoin ETFs to commence trading, leading to optimism that approval for a spot Ethereum ETF is forthcoming. Stuart Barton, Co-founder at Volatility Shares, expressed confidence in the likelihood of an Ethereum ETF approval, citing the SEC’s authorization of futures-based ETFs and its approach to Bitcoin. He suggested that the SEC may approve multiple pending spot Ether ETFs simultaneously.
Direxion Files for Five Bitcoin ETFs
In addition to Fidelity’s proposal, Direxion has filed for five Bitcoin ETFs, including both long and short leveraged funds. This follows filings by ProShares and REX Shares seeking approval for leveraged Bitcoin-tracking ETFs earlier this year.
Hot Take: SEC Extends Deadline for Fidelity’s Ethereum ETF Decision
The U.S. Securities and Exchange Commission (SEC) has extended the deadline for making a decision on Fidelity’s proposal for a spot Ethereum exchange-traded fund (ETF) to March 5. This delay coincides with the submission of five other applications for leveraged Bitcoin ETFs seeking approval from the SEC. The SEC has justified the extension, stating that it requires additional time to evaluate the proposed rule change and associated issues thoroughly. While Fidelity awaits a decision, there is optimism in the market for imminent approval of a spot Ethereum ETF. The recent approval of spot Bitcoin ETFs has fueled this optimism, suggesting that the SEC may take a similar approach to Ethereum. Direxion has also filed for five Bitcoin ETFs, further adding to the growing interest in cryptocurrency ETFs.
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