Delay until March for Fidelity’s proposed Ethereum ETF in spot market

The Securities and Exchange Commission (SEC) has announced a delay in the approval of Fidelity’s Ethereum ETF. The application for the Fidelity Ethereum Fund was submitted by Cboe BZX Exchange in November, with the aim of bringing Ethereum investment into the mainstream market.

The SEC has decided to extend the review period for the Ethereum ETF from January 20, 2024, to March 5, 2024. This decision is based on the need for the SEC to thoroughly consider Fidelity’s proposal and the potential impact of approving a spot Ethereum ETF.

The delay in the approval of the Ethereum ETF was not unexpected. Following the SEC’s approval of a Bitcoin ETF, industry analysts and prominent figures had anticipated a similar move for Ethereum. Bloomberg senior analyst Eric Balchunas has already predicted that an Ethereum ETF is likely to be approved in May, with a 70% chance of success.

If the Ethereum ETF were to be approved, it would bring significant benefits. It would integrate Ethereum-based investments into traditional financial markets, allowing investors to buy and sell shares on established stock exchanges. The ETF would provide indirect exposure to the crypto market, appealing to investors seeking diversified options. Additionally, operating under established financial regulations would enhance investor confidence and provide regulated investment opportunities.

The delay in the approval of the Ethereum ETF is seen as a positive development. It gives the SEC more time to review the proposed rule changes and focus on potential issues that could be detrimental to investors. The expected approval date for the Ethereum ETF is now late May 2024, according to Bloomberg analyst James Seyffart.