SEC Delays Decision on Fidelity's Proposed Spot Ethereum ETF to March

Reported by The Block, the Securities and Exchange Commission delayed its deadline to make a decision on Fidelity's proposal for a spot Ethereum exchange-traded fund until March 5, according to a filing on Thursday.

"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 SEC said.

Fidelity applied for the Fidelity Ethereum Fund in November, noting in its proposal a court ruling last year where judges said the SEC failed to find a coherent reason on why it should reject spot crypto ETFs when it had allowed futures-based products.

Bloomberg Intelligence ETF analyst James Seyffart said the SEC's move to delay was expected. "Fidelity #ethereum ETF delayed just now. Completely expected. Dates that really matter are late May in my view," Seyffart wrote in a post on X.