SEC postpones its decision on Fidelity’s proposed spot Ethereum ETF until March

The regulator needs more time to consider the application and the issues it raises

19.01.2024 - 07:36

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3 min

What’s new? The US Securities and Exchange Commission (SEC) has postponed the deadline for its decision on investment firm Fidelity’s application to create a spot Ethereum exchange-traded fund (ETF) until March 5. The regulator needs more time to review the documents and the issues raised in them. Fidelity applied for permission to launch the Fidelity Ethereum Fund in November.

SEC statement

What else is known? In its application, Fidelity pointed to the court’s August 29, 2023 decision in Grayscale Investment Company v. SEC. It said the regulator could not find an articulable reason to reject applications for spot cryptocurrency ETFs while approving futures products with similar risks.

Bloomberg analyst James Seyffart said the SEC’s delay was expected. He predicts the Commission will make a decision in late May.

Source: Twitter.com

The SEC also followed the court order in the Grayscale lawsuit in deciding to approve spot bitcoin ETFs. It allowed 11 funds from 13 companies into the market on January 11. However, a press release regarding the event emphasized that the Commission still does not endorse bitcoin, and the decision itself “in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.” Earlier, SEC chair Gary Gensler noted that all cryptocurrencies, except for bitcoin, could be recognized as securities.