Markets News Report
January 19, 2024

SEC Extends Deadline for Fidelity’s Ethereum ETF Proposal

SEC Extends Deadline for Fidelity's Ethereum ETF Proposal to March

United States Securities and Exchange Commission (SEC) extended the deadline for deciding on financial services company Fidelity’s proposal for a spot Ethereum exchange-traded fund (ETF) to March 5. This extension provides the SEC with additional time to consider whether to approve, disapprove, or institute proceedings regarding the proposal.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” said the SEC representative. 

Fidelity submitted an application for the Fidelity Ethereum Fund in November. In its proposal, the company referenced a court ruling from the previous year, in which judges observed that the SEC had not provided a clear rationale for rejecting spot cryptocurrency ETFs while approving futures-based products.

Bloomberg Intelligence ETF analyst James Seyffart noted that the SEC decision to delay was anticipated. He subsequently shared his opinion on social media plattform X. 

There are predictions among analysts that the SEC may opt to approve several spot Ethereum ETF applications simultaneously, mirroring its approach with spot Bitcoin ETFs. 

Fidelity entered the competition for a spot Ethereum ETF alongside industry giant BlackRock late last year. A month before the submission of applications by these firms for spot products, ETH futures ETFs went live.

SEC Actions Spark Speculations on Ethereum’s Turn

The SEC granted approval last week for 11 spot Bitcoin ETFs to commence trading. This development has prompted speculation within the industry about the possibility of a spot Ethereum ETF being the next consideration. 

As a response to the news, market participants redirected their attention towards Ethereum. The native token of Ethereum, ETH, witnessed a price surge, reaching a peak of $2,644.45 as of January 11th, and currently maintaining around the $2,465 mark at the time of writing, according to OKX market data.

Investors in ETH anticipate the possibility of the price holding steady, given that the most apparent driver, aside from the scheduled Ethereum network upgrades, is not anticipated in the short term—referring to the Ethereum spot ETF.

As of now, BlackRock, VanEck, ARK 21Shares, Fidelity, Invesco Galaxy, Grayscale, and Hashdex are among the applicants vying for SEC approval for spot Ethereum ETFs. 

Recently, BlackRock chief executive officer Larry Fink expressed positive sentiments towards the concept of an Ethereum ETF, aligning with the company’s ongoing journey toward tokenization.

In light of the SEC’s decision to extend the deadline for Fidelity’s spot Ethereum ETF proposal, industry analysts anticipate potential simultaneous approvals for multiple spot Ethereum ETF applications.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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Alisa Davidson
Alisa Davidson

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at [email protected]

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