The U.S. Securities and Exchange Commission (SEC) has recently announced that it is delaying its decision on Fidelity’s proposed spot Ethereum ETF. This decision pertains to a proposed rule change that would enable Cboe BZX to list and trade shares of Fidelity’s planned fund. The SEC’s original deadline for approving or rejecting the rule change was January 20. However, the commission has now decided to extend the deadline by 45 days to March 5.
The SEC’s choice to delay the decision on Fidelity’s spot Ethereum ETF comes as no surprise. Similar cases involving pending funds often face extended proceedings. Bloomberg ETF analyst James Seyffart has commented on the matter, stating that the delay was “completely expected.” Seyffart also noted that late May deadlines are of significant importance in this situation.
In particular, the May deadline is related to VanEck’s competing spot Ethereum ETF proposal. The SEC must either approve or reject VanEck’s application by May 23. Since the SEC has already initiated proceedings on VanEck’s proposal, it cannot further delay its decision. Typically, the commission grants approvals for similar ETFs together. Therefore, it is highly likely that the SEC will announce its decision on all pending spot Ethereum ETFs in late May. It should be noted that while Fidelity, VanEck, and other applicants received approval for spot Bitcoin ETFs, this does not guarantee the approval of Ethereum ETF proposals.
At the time of press, Ethereum holds the second position in terms of market capitalization. However, the ETH price has experienced a decline of 2.47% over the past 24 hours. Currently, Ethereum has a market capitalization of $295.94 billion, with a 24-hour trading volume of $11.91 billion. Detailed information about Ethereum can be found on Jan. 19 at 12:26 am UTC.
The global cryptocurrency market is currently valued at $1.63 trillion, with a 24-hour trading volume of $63.06 billion. Bitcoin’s dominance in the market stands at 49.61%. This data reflects the overall state of the cryptocurrency market during the time of writing.
The SEC’s delay in deciding on Fidelity’s spot Ethereum ETF has generated anticipation in the cryptocurrency community. With a new deadline set for March 5, stakeholders will have to wait longer to ascertain the fate of Fidelity’s proposal. Furthermore, the upcoming decision on VanEck’s competing ETF in late May will significantly impact the approval or rejection of Ethereum ETF proposals. As the SEC tends to approve similar ETFs together, the final determination will have a profound effect on the future of spot Ethereum ETFs. In closing, the cryptocurrency market as a whole remains volatile, with Ethereum experiencing a recent decline in its price.
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