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The United States Securities and Exchange Commission (SEC) has announced a 45-day extension in the evaluation process for Fidelity’s proposed Ethereum exchange-traded fund (ETF). The decision date, initially slated for late February, has been moved to March 5, 2024, as the SEC takes the additional time to thoroughly consider the proposed rule change.
Anticipation for Late May Decision Dates
[embed]https://twitter.com/JSeyff/status/1748098917676331285[/embed] Bloomberg ETF analyst James Seyffart anticipated the delay and emphasized late May as the crucial period for ETF decisions. This aligns with the SEC’s final deadline of May 23 for VanEck’s Ether ETF. The extended timeline suggests a meticulous review process to address raised concerns and evaluate the implications of the Fidelity Ethereum Fund.
Optimism for Ethereum Spot ETF Approval
Despite skepticism, analysts express optimism regarding the potential approval of multiple spot Ether ETFs. Bloomberg’s Eric Balchunas projects a 70% likelihood of an Ethereum spot ETF approval in May. Factors supporting this optimism include the existing trading of ETH futures on CME, previous approvals for ETH futures ETFs, and a high correlation between ETH futures and spot markets.
Varied Perspectives on SEC's Stance
[embed]https://twitter.com/JoeCarlasare/status/1746994770038124866[/embed] Digital asset lawyer Joe Carlasare believes the SEC's approval of BTC spot ETFs provides a precedent favoring Ethereum. He points to the regulatory environment, emphasizing that the SEC is likely to approve two digital asset spot ETFs rather than just one. However, others, like SEC Chairman Gary Gensler, express caution, noting that BTC is currently the only recognized crypto commodity.
Complex Equation for Approval
[embed]https://twitter.com/NateGeraci/status/1748099050098843968[/embed] Nate Geraci, President of the ETF Store, outlines a formula for spot Ether ETF approval, emphasizing the importance of CME-traded ether futures, ETF approval for such futures, a Grayscale court victory, and the approval of a spot bitcoin ETF. The presence of these components in the market suggests a positive outlook for Ethereum ETF approval. As the SEC extends its review period, the crypto community awaits key decisions in late May, shaping the landscape for Ethereum ETFs.