SEC delays Fidelity’s Ethereum spot ETF, but decisions are still expected in May

The U.S. Securities and Exchange Commission (SEC) said connected Jan. 18 that it has delayed its determination connected Fidelity’s projected spot Ethereum ETF.

More specifically, the determination concerns a projected regularisation alteration that would let Cboe BZX to database and commercialized shares of Fidelity’s planned fund.

The SEC noted that the projected regularisation alteration was primitively filed connected Nov. 17, 2023 and published for remark successful the national registry connected Dec. 6, 2023.

The SEC said contiguous that, based connected those dates, it was antecedently required to approve, reject, oregon institute proceedings determining whether to disapprove the projected regularisation alteration by Jan. 20.  However, it has present chosen to usage a proviso that allows it to widen that deadline by 45 days to March 5, 2024.

It is apt that the SEC volition take to institute proceedings astir Fidelity successful March, arsenic it done for definite different pending funds.

SEC expected to determine connected ETH ETFs successful May

Bloomberg ETF expert James Seyffart said today that the Fidelity hold was “completely expected” and asserted that precocious May deadlines “really matter.”

That May deadline appears to beryllium related to the information that the SEC indispensable either o.k. oregon reject  VanEck’s competing spot Ethereum ETF connection by May 23.

As the SEC has already instituted proceedings connected VanEck’s application, it cannot hold its determination immoderate further. And due to the fact that the SEC mostly approves akin ETFs together, it volition apt determine connected each pending spot Ethereum ETFs successful precocious May, adjacent though different applications person aboriginal deadlines.

It should besides beryllium noted that Fidelity, VanEck, and respective different applicants succeeded successful gaining support for spot Bitcoin ETFs connected Jan. 10. The occurrence of those Bitcoin ETFs does not warrant that Ethereum ETF proposals volition besides summation approval.

Public expectations are divided: 1 prediction marketplace connected Polymarket presently reports 54% likelihood successful favour of spot Ethereum ETF approvals.

The station SEC delays Fidelity’s Ethereum spot ETF, but decisions are inactive expected successful May appeared archetypal connected CryptoSlate.