Fidelity’s Ethereum ETF Faces Regulatory Hurdle as SEC Extends Decision Window
Fidelity Investments’ plans to launch a spot Ethereum exchange-traded fund (ETF) have hit a snag as the U.S. Securities and Exchange Commission (SEC) has extended its decision window. The proposed Wise Origin Ethereum Trust would enable investors to track the performance of Ether, the second-largest cryptocurrency, without directly owning it.
ETF analyst James Seyffart suggests that the SEC may approve a batch of spot Ethereum ETFs, similar to its recent approval of Bitcoin ETFs. The regulator’s decision on VanEck’s Ethereum ETF application, due on May 23, is seen as a key date in this regard.
Last week, the SEC granted approval for 11 spot Bitcoin ETFs, marking the first time such funds can be traded in the U.S. Prior to this, all spot Bitcoin ETF applications had been rejected. Following the approvals, the price of Ether outperformed Bitcoin, surging above $2,600 for the first time since May 2022. However, Ether has since experienced a 7% decline over the past week, currently trading at $2,436, while Bitcoin dropped 6.4% to $40,642 during the same period.
Fidelity’s Bitcoin ETF, which was among the funds approved by the SEC last week, has already surpassed $1 billion in assets under management, making it the second ETF to achieve this milestone.
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| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | James Seyffart |
| Companies | VanEck, Fidelity, Bloomberg, The Block, CoinGecko, U.S. Securities and Exchange Commission (SEC) |
| Currencies | Lido Staked Ether |
| Securities | None |
