SEC Delays Decision on Fidelity's Ethereum ETF
SEC delays decision on Fidelity's Ethereum ETF; final call expected in May amid Coinbase legal issues.
On January 18, the U.S. Securities and Exchange Commission (SEC) postponed its decisionon Fidelity's new Ethereum ETF. This fund, if approved, would be traded on the Cboe BZX exchange. The SEC had until January 20, 2024, to decide but has now extended the deadline to March 5, 2024.
According to Bloomberg's ETF analyst James Seyffart, the delay was expected. He notes that the SEC's final decision on this and other similar Ethereum ETFs, like VanEck's, will likely happen in late May. This is because the SEC often decides on similar ETFs at the same time.
It's important to note that Fidelity and others got approval for Bitcoin ETFs on January 10. But, success with Bitcoin ETFs doesn't mean Ethereum ETFs will also be approved.
Meanwhile, the SEC is in a legal fight with Coinbase, accusing them of selling unregistered securities. During a recent court hearing, Coinbase argued that its tokens are not securities while the SEC warned them against reinterpreting “The Howey Test”. The judge, Katherine Polk Failla, has not yet decided on the case.
