The Securities and Exchange Commission (SEC) has postponed the deadline for passing a judgment on the proposed spot Ethereum ETH/USD exchange-traded fund (ETF) by Fidelity to March 5.
What Happened: The SEC has expanded the decision-making timeframe for the proposed rule amendment, allowing for a more thorough consideration of the proposal and related matters. The regulatory body stated the necessity for a lengthier evaluation period to decide on approving, disapproving, or initiating proceedings, reported The Block on Friday.
Fidelity tendered the proposal for the Fidelity Ethereum Fund in November. The proposal referred to a court ruling from the previous year that cast doubt on the SEC’s denial of spot cryptocurrency ETFs, while it approved futures-based products.
James Seyffart, an ETF analyst at Bloomberg Intelligence, suggested that the SEC’s delay was expected. He proposed that the crucial dates are likely to be towards the end of May.
Why It Matters: Last week, the SEC sanctioned 11 spot Bitcoin BTC/USD ETFs for trading, leading to conjecture about a possible spot Ethereum ETF shortly. Fidelity, along with BlackRock, is among the contenders for the spot Ethereum ETF.
The delay in the SEC’s decision comes amidst a broader discussion about the regulation and acceptance of cryptocurrency-based financial tools.
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