When Fidelity Investments filed for the Ether ETF last year, the asset manager noted a court ruling where judges said the SEC failed to find a cogent reason to reject spot crypto ETF.
The United States Securities and Exchange Commission (SEC) has delayed its decision for Fidelity Investment’s Ether ETF bid. Announcing the update on the 18th of January, the US regulator said it is delaying its decision on the ETH proposal till the 5th of March. Meanwhile, the asset manager has been expecting a decision since it submitted an application in November 2023. The highly-awaited approval is set to mark a historic moment in the crypto market, as many believe it would positively impact Ethereum.
US SEC Delays Decision on Fidelity Investment’s Ether ETF Bid
The SEC explained why it had pushed its decision on the Fidelity Ether ETF bid to a later date in the following way:
“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.”
When Fidelity Investments filed for the Ether ETF last year, the asset manager noted a court ruling where judges said the SEC failed to find a cogent reason to reject spot crypto ETF. Per the ruling, the fact that the Commission had permitted futures-based products is more reason to embrace the crypto ETFs. Even though hopes are high, Fidelity Investments and other interested parties must wait another 45 days to hear the SEC’s decision. Notably, the Commission may approve, disapprove, or institute proceedings regarding the matter.
While the extension was a surprise to many, it was different for Bloomberg ETF Analyst James Seyffart. The analyst said the postponement was “completely expected,” in his opinion. Also, he has a contrary date for the SEC’s decision. Against the Commission’s 5th of March schedule, Seyffart said, “dates that really matter are late May.”
The analyst’s comment points to the 23rd of May deadline, when the SEC has to decide on VanEck’s Ether ETF. Conversations on X and comments from some analysts are optimistic about the approval of Fidelity Investments Ether ETF. In addition, some said the Commission could authorize multiple spot Bitcoin ETFs simultaneously. Indeed, the SEC recently gave the green light to 11 pending spot Bitcoin ETFs to begin trading.
More Bitcoin ETF Filings
As the SEC postpones its decision on Fidelity Investment’s Ether ETF, Direxion filed for five BTC ETFs with the SEC. The financial company submitted its application a few days after ProShares’ filing. On the 16th of January, ProShares put in for five leveraged Bitcoin-tracking ETFs. ProShares’ filing includes Plus Bitcoin ETF, Ultra Bitcoin ETF, UltraShort Bitcoin ETF, Short Bitcoin ETF, and ShortPlus Bitcoin ETF. As Direxion’s submission came after ProShares, ProShares also followed Rex Shares, who filed for six leveraged Bitcoin ETFs on the 3rd of January.
