SEC Postpones Decision on Fidelity’s Ethereum Spot ETF, May Determine Fate in March

The U.S. Securities and Exchange Commission (SEC) announced on January 18 a delay in its decision regarding Fidelity’s proposed Ethereum spot exchange-traded fund (ETF). This delay pertains to a proposed rule change enabling Cboe BZX to list and trade shares of Fidelity’s intended fund.

Originally filed on November 17, 2023, and published for public comment on December 6, 2023, the SEC was initially obligated to approve, reject, or initiate proceedings on the proposed rule change by January 20. However, utilizing a provision allowing a 45-day extension, the SEC extended the deadline to March 5, 2024.

What Are Analysts Saying?

Market analysts, including Bloomberg ETF analyst James Seyffart, anticipated this delay, emphasizing the significance of late May deadlines. The SEC is expected to decide on competing spot Ethereum ETF proposals, including VanEck’s, by May 23. Given the SEC’s prior initiation of proceedings on VanEck’s application, it is constrained by further delays, likely resulting in decisions on all pending spot Ethereum ETFs in late May.

It’s essential to note that the recent approval of spot Bitcoin ETFs for Fidelity, VanEck, and others on January 10 does not guarantee approval for Ethereum ETF proposals. Public expectations are divided, with a prediction market on Polymarket currently indicating 54% odds in favor of spot Ethereum ETF approvals.

Market Overview

As of the latest data, the global cryptocurrency market stands at $1.63 trillion, boasting a 24-hour trading volume of $63.06 billion, while Bitcoin dominance hovers around 49.61%. The impending decisions on Ethereum ETFs add a layer of anticipation to an evolving market landscape.

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