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- The SEC has delayed Fidelity's Ethereum ETF until March 5, 2024.
- Fidelity applied for the Fidelity Ethereum Fund in November by Cboe BZX Exchange, this proposal will integrate Ethereum Investment into the mainstream market.
- The delay will be for the SEC as they want to thoroughly consider Fidelity’s proposal and the wider significance of approving a spot Ethereum ETF.
The Securities and Exchange Commission has delayed Ethereum ETF From January 20, 2024, to March 5, 2024, filed in November by Cboe BZX. The Commission thinks it is wrong to designate a longer period to take action on the proposed rule change.
“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,”
SEC
Was the Delay Expected?
After this decision by the SEC, many analysts and prominent figures have reacted to it saying they had expected this before cause right after the Securities and Exchange Commission approved Bitcoin ETF, everyone in the industry was talking about Ethereum ETF. Bloomberg senior analyst Eric Balchunas whose tweets always catch attention has already said that Ethereum ETF is expected in May and there is a 70% chance of it.
What if the Ethereum ETF has been Approved?
If Ethereum ETF had been approved, it would have seen its big benefits like it would integrate Ethereum-based investments into mainstream financial markets. This Ethereum ETF will allow investors to buy and sell shares on traditional stock exchanges.
If approved, Ethereum ETFs will offer indirect exposure to the crypto market, appealing to investors seeking diversified options. It will operate under established financial regulation which will enhance investor confidence and will provide huge regulated investment options.