The US Securities and Exchange Commission (SEC) has delayed a decision on Fidelity's application to launch ethereum (eth) spot ETF.
According to information from the regulator website Dated January 18, a decision on the application is now expected on March 5, 2024.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
SEC Filing
Bloomberg analyst James Seyffart called the move “expected.” At the same time, he admitted that in March the SEC would again postpone the decision on the application until May.
ethereum price reacted with a slight decline, falling 2.8% to $2,459 at the time of writing. However, cryptocurrency trading volumes increased significantly: more than 14% in 24 hours, up to $11.9 billion.
<img decoding="async" width="1024" height="495" src="https://crypto.news/app/uploads/2024/01/Screenshot-2024-01-19-at-09.23.31-1024×495.png” alt=”SEC Postpones Decision on Fidelity ethereum Spot ETF – 1″/>
Last week, the SEC approved 11 bitcoin (btc) spot ETFs to begin trading, leading some in the industry to question whether an ethereum spot ETF will follow.
In late 2023, Fidelity joined giant BlackRock in the race for an ethereum spot ETF. A month before these companies submitted bids for spot products, eth futures ETFs were launched. The head of financial giant BlackRock, Larry Fink, said he “sees value” in a spot ETF based on the second-largest cryptocurrency. In his opinion, these are “just steps towards tokenization.”
