Fidelity’s Proposed Spot Ethereum ETF Delayed Until March

The post Fidelity’s Proposed Spot Ethereum ETF Delayed Until March appeared first on Coinpedia Fintech News

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,”

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.

Bloomberg analyst also sheds light on the matter that it was completely expected that Ethereum ETF would be delayed and the expected dates are in May 2024.

This Ethereum ETF delay will be beneficial for the SEC as they will get more time to review proposed rule changes and focus on issues that may be harmful to investors.