Ethereum ETF Resolution Delayed to March 2024
The U.S. Securities and Exchange Commission (SEC) has extended the review period for the proposed rule change by Cboe BZX Exchange, Inc. This change pertains to the listing and trading of shares of the Fidelity Ethereum Fund. The SEC is required to take action on a proposed rule change within 45 days, but it can extend this period up to 90 days if necessary. The original deadline for the proposed rule change was January 20, 2024. However, the SEC has decided to designate a longer period for a comprehensive evaluation and has set March 5, 2024, as the new deadline.
ETH Price Down By 3%
Amid the broader market sell-off, the Ethereum price has dropped by 3%. At press time, Ethereum is trading at $2,459 with a market cap of $295 billion. Despite this drop, the ETH price remains above its ascending triangle pattern on the technical charts, indicating potential for a rally to $3,400 and beyond.
Prospects for Ethereum ETF Approval Remain Uncertain
The approval of an Ethereum ETF faces uncertainty compared to the recent launch of a Bitcoin ETF. While Bitcoin received acknowledgment from SEC Chair Gary Gensler as a non-security commodity similar to gold and silver, Ethereum’s classification remains unclear. Gensler is cautious in defining Ethereum, creating a cloudy landscape for its potential ETF approval. JPMorgan also expresses skepticism over the approval of a spot Ethereum ETF by May 2024.
Hot Take: Challenges Ahead for Ethereum ETF Approval
The delay in approving a spot Ethereum ETF indicates that there are challenges ahead for its approval. The SEC’s extension of the review period suggests that a thorough evaluation is necessary before making a decision. The uncertain classification of Ethereum and skepticism from financial players like JPMorgan further add to the obstacles. As a result, the March 2024 deadline will be crucial in determining whether an Ethereum ETF will be approved or not. Investors and crypto enthusiasts eagerly await the SEC’s decision, which will have significant implications for the future of Ethereum and its investment opportunities.
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