The U.S. Securities and Exchange Commission (SEC) has recently announced that it will be extending the deadline for making a decision on Fidelity’s proposed spot Ethereum ETF. Originally scheduled for a decision by January 20, the SEC has chosen to use a provision that allows it to extend the deadline by 45 days, making the new decision date March 5, 2024. This delay comes as no surprise to industry experts, as similar proceedings have occurred for other pending funds.
The SEC’s decision to delay the ruling on Fidelity’s proposed ETF has significant implications for market sentiment surrounding Ethereum. In particular, a May deadline looms for VanEck’s competing spot Ethereum ETF proposal, as the SEC is required to approve or reject it by May 23. Since the SEC has already initiated proceedings on VanEck’s application, it cannot postpone its decision any further. Consequently, all pending spot Ethereum ETFs will likely be decided upon in late May, even if they have later deadlines.
Although Fidelity, VanEck, and several other applicants recently obtained approval for spot Bitcoin ETFs, it does not guarantee a green light for Ethereum ETF proposals. The SEC’s decision-making process remains independent for each asset class, and the success of Bitcoin ETFs does not necessarily indicate approval for Ethereum-based funds. As a result, public expectations regarding the approval of spot Ethereum ETFs are divided.
As of now, Ethereum holds the second position in terms of market capitalization, with the ETH price experiencing a 2.47% drop over the past 24 hours. With a market capitalization of $295.94 billion and a trading volume of $11.91 billion, Ethereum’s performance remains a crucial factor for investors and traders alike. In the broader cryptocurrency market, valued at $1.63 trillion, Bitcoin dominance stands at 49.61%.
The SEC’s decision to delay the ruling on Fidelity’s Ethereum ETF has left market participants eagerly awaiting its final determination. The subsequent implications for other pending spot Ethereum ETFs, along with the unpredictability of SEC approval, have created divided expectations. As the market continues to closely monitor the SEC’s actions, the future of Ethereum ETFs remains uncertain, impacting investor sentiment in the cryptocurrency space.