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The US Securities and Exchange Commission (SEC) has delayed its deadline to make a decision regarding Fidelity’s proposed spot Ethereum ETF (exchange-traded fund) until Mar. 5, according to a Jan. 18 filing.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change and the issues raised therein,” said the SEC. This ensures that the SEC “has sufficient time to consider the proposed rule change and the issues raised therein, ” it added.
Fidelity applied for the Fidelity Ethereum Fund in November, mentioning a landmark 2023 court ruling in which a judge said the SEC had failed to give a coherent reason as to why spot ETFs should blocked by the regulator when it had allowed futures-based products. The SEC’s behavior was called ”arbitrary and capricious.”
Fidelity #ethereum ETF delayed just now. Completely expected. Dates that really matter are late May in my view. https://t.co/8mvhcPRaS7
— James Seyffart (@JSeyff) January 18, 2024
SEC Delaying Ethereum ETF Decision Was Expected
Bloomberg Intelligence ETF analyst James Seyffart said on X that the SEC’s decision to delay was expected, and that all eyes should be on May for the next batch of important decisions. Seyffart predicted this is when a spot ETH ETF will enter the crypto market.
In a Dec. 15 interview with The Block, Seyyfart shared that he believes the SEC has already acknowledged ETH as a commodity. As a result, he thinks that this makes the odds of a spot ETH ETF approval “more likely than not” by the end of May this year.
This timeline comes as the deadline for some ETH ETF applications, including from ARK, 21Shares and VanEck, is set for between May 23 and 24.
The analyst did, however, say that the SEC may argue that BTC and ETH ETFs are very different products. Seyyfart said the ETH futures market is not as robust or institutionalized as Bitcoin’s, for example.
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