The U.S. Securities and Exchange Commission (SEC) has extended the deadline to make a decision on Fidelity's proposal for a spot ethereum exchange-traded fund (ETF) to March 5, as noted in a Thursday presentation.
This delay coincides with the filing of five other leveraged bitcoin ETF applications seeking SEC approval.
SEC delays decision on Fidelity ETF
The SEC has justified extending the deadline to decide on Fidelity's proposed ethereum ETF to March 5 in its latest filing, indicating that it requires additional time to thoroughly evaluate the proposed rule change and associated issues.
Fidelity filed for the ethereum Fund in November. In its proposal, Fidelity referenced a court ruling from the previous year, where judges criticized the SEC for lacking a coherent reason to reject spot crypto ETFs while still allowing futures-based products.
Initially, the SEC was required to approve, reject, or initiate proceedings related to the proposed rule change by January 20. However, the commission chose to use a provision allowing a 45-day extension.
Bloomberg ETF analyst James Seyffart said on X that he anticipated the delay, noting that the important dates to take into account are the end of May. He highlighted the SEC's final deadline of May 23 to approve or reject VanEck's Ether ETF.
Seyffart suggested that the SEC could approve multiple outstanding Ether spot ETFs simultaneously, similar to its approach with bitcoin spot ETFs.
Considering that the SEC has already initiated proceedings on VanEck's request, it cannot delay its decision any further.
Optimism for the imminent approval of the ethereum ETF
Last week, the SEC approved 11 bitcoin spot ETFs to begin trading. This decision, widely celebrated in the market, has generated optimism that the approval of an ethereum spot ETF is imminent.
Stuart Barton, co-founder of Volatility Shares, expressed confidence in the likelihood of a timely approval of an ethereum ETF, pointing to the agency's authorization of futures-based ETFs.
Barton suggested that the SEC's decision to allow futures-based ETFs to be listed indicates a similar approach to ethereum as they have done with bitcoin. He deduced that the commission is probably considering ethereum not a security and is unwilling to regulate it that way.
While Fidelity awaits a decision from the SEC on its proposed ethereum ETF, Direxion has entered the scene by filing for five bitcoin ETFs. This move follows filings from ProShares, which filed for approval of five bitcoin-tracking leveraged ETFs on January 16, and REX Shares, which filed for six bitcoin leveraged ETFs on January 3.
Direxion's filing outlines plans for 1x, 1.5x, and 2x long leveraged bitcoin funds, along with one for short leveraged funds.
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