- Fidelity’s Ethereum ETF faces a delayed decision from the SEC, with a final resolution expected by March 5, 2024.
- Analysts, including James Seyffart, predict potential approval for spot Ethereum ETFs in late May.
- Fidelity’s Bitcoin ETF gains significant traction, accumulating $2.1 billion in trading volume within the first five days.
While Bitcoin ETFs made a triumphant debut in the US, the wait for its Ethereum counterpart continues. Fidelity, one of the leading applicants, received a delayed decision from the U.S. Securities and Exchange Commission, pushing the final resolution to March 5, 2024.
“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,” the filing said.
This comes as no surprise to many experts, including Bloomberg’s James Seyffart, who predicts a late May approval date for spot Ethereum ETFs. This aligns with the SEC’s deadline to make final decisions on several applications by May.
The bullish sentiment for Ethereum ETF approval is shared by several others. Senior ETF analyst Eric Balchunas believes it’s unlikely for the SEC to greenlight spot Bitcoin ETFs but not spot Ethereum ETFs.
However, TD Cowen, a leading investment bank, throws a curveball, suggesting a potentially long wait of up to 26 months with approval only after the US elections. The bank expects the SEC to prioritize gaining experience with Bitcoin ETPs before considering Ethereum or other crypto token ETPs.
Fidelity Investments joined BlackRock in the Ethereum ETF race, filing a 19b-4 application with the SEC on November 17. According to the filing, the proposed rule change names the fund the Fidelity Ethereum Fund.
Meanwhile, Fidelity’s Bitcoin ETF is already making waves. Within its first five days, it raked in a whopping $2.1 billion in trading volume and $1 billion in inflows, earning it a spot among the top issuers alongside BlackRock and Grayscale. Seyffart highlighted this, saying, “Notably, Fidelity also joins the Billionaires club.”
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