The US Securities and Exchange Commission (SEC) has pushed back the deadline for a ruling on Fidelity's proposed spot Ethereum ETF to March 5.
According to Thursday's filing, the SEC “found it appropriate to set aside an extended period of time to act on the proposed rule change” to “ensure that there is sufficient time to consider the proposed rule change and the issues raised therein.” .”
Bloomberg Intelligence ETF analyst James Seifert said the delay was entirely predictable, adding that “the most important dates in my view are at the end of May.”
Fidelity joins BlackRock, Ark Invest/21shares and VanEck in filing for the spot Ethereum ETF in November 2023.
Eric Balchunas of Seyfert expressed his belief that an Ethereum ETF will be approved by 2024 earlier this month, asserting that there is a 70% chance of approval by May. Speaking on Rugged Radio's FOMO Hour, Balchunas said the SEC's preliminary approval of an Ethereum futures ETF backed the regulator into a corner, while the approval of a Bitcoin futures ETF led to a court order to review Grayscale's spot Bitcoin ETF application.
The SEC approved several bitcoin ETF applications last week, with Chairman Gary Gensler admitting that conditions have “changed” following the court's order.
“Ipso facto, you have to approve the ether space [ETF]Balchunas said during an appearance on Rag Radio late last week.
In a statement following the approval of the spot Bitcoin ETF, SEC Chairman Gensler said, “Today's Commission action is limited to ETFs that contain a non-security commodity,” Bitcoin, and “should not in any way implicate the Commission's intentions.” Approve detailed standards for crypto asset securities.” Gensler added, “Also, the approval is not indicative of the Commission's view of the status of other crypto assets under federal securities laws.”
During his tenure as SEC chairman, he repeatedly declined to clarify whether the regulator was being considered. Ethereum Security or Commodity.
While teaching a course on blockchain at MIT before taking the position at the regulator, Gensler described Ethereum as “not safe” in the eyes of the SEC, citing that this cryptocurrency is “not decentralized enough”. To qualify. Gensler appears to be echoing the sentiments of the SEC's former director of corporate finance, William Hinman, in his June 2018 “not enough decentralization” speech.
Gensler's associate regulator, Commodity Futures Trading Commission (CFTC) Chairman Rustin Behnam, expressed the view that Ethereum should be considered a commodity.
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