The United States Securities and Exchange Commission (SEC)
has announced a 45-day extension to its deliberation period for asset manager
Fidelity’s Ether exchange-traded funds (ETFs). The regulatory body cited the
need for sufficient time to evaluate the proposed rule change and address
related concerns. The new decision date is set for March 5, 2024.
Bloomberg ETF analyst James Seyffart expressed little
surprise at the delay, stating in a January 18 Twitter post that the
significant dates to watch are likely in late May. He referred to the SEC’s May
23 final deadline for approving or denying VanEck’s Ether ETF. Seyffart and
some analysts speculate that the SEC might approve multiple spot Ether ETFs
simultaneously, mirroring its approach to spot Bitcoin ETFs.
Meanwhile, Direxion has joined the race by filing for five
Bitcoin ETFs with the SEC on January 18. ProShares and REX Shares, among other
rivals, have also entered the fray. ProShares submitted five leveraged
Bitcoin-tracking ETFs on January 16, while REX Shares filed for six leveraged
Bitcoin ETFs on January 3.
Direxion’s filing outlines plans for 1x, 1.5x, and 2x long
leveraged Bitcoin funds, along with corresponding short leveraged funds. Bloomberg ETF analyst
Eric Balchunas commented on Twitter, stating: “Leveraged Bitcoin ETFs may
soon outnumber long only. Pretty sure that’s never happened [before].”
The U.S. SEC has postponed a resolution on Fidelity’s proposed spot Ethereum ETF, with a new resolution deadline of March 5, 2024. Bloomberg analyst James Seyffart said the delay was in line with expectations, estimating that the approval date for a spot Ethereum ETF could be…
— Wu Blockchain (@WuBlockchain) January 19, 2024
Bitcoin
as Commodity, Ether’s Uncertain Regulatory Future
Opinions within the industry vary on the likelihood of the
SEC approving spot Ether ETFs. Balchunas expressed optimism, placing a 70%
chance of approval by May, considering the SEC’s final deadline for VanEck’s
fund. However, Mark Yusko, co-founder and CEO of Morgan Creek Capital, offered
a more cautious perspective. He argued that the SEC remains hostile towards
cryptocurrencies,
suggesting the possibility of classifying Ether as a security, unlike Bitcoin,
which SEC Chair Gary Gensler has previously categorized as a commodity.
The United States Securities and Exchange Commission (SEC)
has announced a 45-day extension to its deliberation period for asset manager
Fidelity’s Ether exchange-traded funds…
