- U.S. SEC delays decision on Fidelity’s Ethereum ETF to March 5, 2024.
- Experts predict potential approval of spot Ethereum ETFs by end of May.
- Fidelity’s Bitcoin ETF garners $1 billion inflows, $2.1 billion trading volume in 5 days.
Bitcoin ETFs successfully launched in the United States, yet the anticipation for an Ethereum-based ETF persists. The U.S. Securities and Exchange Commission postponed its decision regarding Fidelity, a major contender, setting the new deadline for a determination on March 5, 2024.
“The Commission deems it suitable to allocate an extended timeframe to decide on the proposed rule amendment in order to ensure adequate time is available to review the proposed change and address the concerns it presents,” the document stated.
Many experts, such as Bloomberg’s James Seyffart, have anticipated this outcome, forecasting that spot Ethereum ETFs will likely receive approval towards the end of May. This expectation coincides with the SEC’s established deadline to reach conclusive verdicts on a number of pending applications, which falls in May.
Several others also share the optimistic outlook for the approval of Ethereum ETFs. Eric Balchunas, a senior ETF analyst, thinks that if the SEC approves spot Bitcoin ETFs, it would be improbable for them not to approve spot Ethereum ETFs as well.
Nevertheless, TD Cowen, a prominent investment bank, indicates a possible extended delay of 26 months, with authorization anticipated to come only after the U.S. elections. The bank anticipates that the SEC will focus on acquiring familiarity with Bitcoin ETPs prior to evaluating Ethereum
On November 17, Fidelity Investments submitted a 19b-4 application to the SEC, following BlackRock’s lead in the competition to launch an Ethereum ETF. The filing indicates that the fund will be called the Fidelity Ethereum Fund, per the suggested rule modification.
In its initial five days, Fidelity’s Bitcoin ETF has made a significant impact. It amassed an impressive $2.1 billion in trading volume and attracted $1 billion in inflows, placing it in the same league as major issuers like BlackRock and Grayscale. Seyffart pointed out, “Fidelity notably becomes a member of the Billionaires club.”
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