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The US Securities and Exchange Commission (SEC) began accepting comments on Fidelity’s proposed ethereum spot ETF via a November 30 presentation.
That filing indicates that the brokerage is now seeking comments on a proposed rule change by Cboe BZX. If approved, that rule change will allow the exchange to list and trade shares of Fidelity’s ethereum Fund.
The SEC’s request for comment resembles similar filings regarding other crypto spot ETF proposals. It solicits comments on surveillance, custody and market manipulation, among other issues. In particular, the filing highlights a watchdog swap agreement that Coinbase and Cboe BZX established in June, a critical component also found in many other pending crypto spot ETF proposals.
The filing also acknowledges the lack of existing regulated and exchange-traded investments in the US that provide exposure to eth, while European markets already offer regulated investments that provide exposure to spot cryptoassets.
Decision probably by March 2024
The filing sets out a timeline for the SEC to approve, disapprove or initiate proceedings to determine whether to disapprove the proposed rule change. These comments are considered in the final decision-making process. The SEC must reach a decision within 45 days of publication of the current notice in the federal register; However, the SEC can extend the decision period up to 90 days and then an additional 60 days if necessary.
Although exact timelines may differ, James Seyffart, ETF analyst at Bloomberg My dear that the SEC’s next decision deadline for Fidelity will be January 21, 2024, and its final decision will be March 8, 2024. He added that he will learn of “definitive deadlines in the coming weeks.”
Fidelity initially filed for its ethereum spot ETF on Nov. 17, days after competitor BlackRock filed for a matching fund on Nov. 15. Both companies also filed for bitcoin spot ETFs this summer starting in mid-June.
Several other asset managers, including Ark Invest, VanEck, and Grayscale, also have pending crypto spot ETF proposals.