The U.S. Securities and Exchange Commission (SEC) has extended its period of deliberation regarding asset manager Fidelity’s proposed exchange-traded fund (ETF) based on the cryptocurrency Ethereum.
The SEC has until March 5th to decide whether to approve or deny the listing. Fidelity filed for the Ethereum ETF last month. Originally, the regulatory body had a deadline of January 18th to determine the fate of Fidelity’s Ether ETF bid.
However, the SEC opted to invoke a 45-day delay to allow more time to examine the proposed rule change and address associated considerations carefully.
This resets the SEC’s deadline clock to March 5, 2024, for ruling on the ETF. The extension permits comprehensive scrutiny to ensure adequate investor protections around the novel crypto-based fund.
The delayed decision comes amid the SEC’s recent approval of several Bitcoin ETFs. Unlike Bitcoin, Ethereum’s status as a potential security or commodity remains ambiguous in the eyes of regulators like SEC Chairman Gary Gensler.
This uncertainty casts doubt on whether the Commission approves a fund tracking the value of the second-largest cryptocurrency. The agency continues to exercise caution in its examination of crypto ETF filings.
