The US Securities and Exchange Commission (SEC) is postponing its decision on banking giant Fidelity’s Ethereum (ETH) exchange-traded fund (ETF) until March.
In a new document, the regulatory body writes say that it needs more time to consider approving such a product – which was originally proposed in November and would see Fidelity’s ETH-based ETF traded on the Chicago Board Options Exchange (CBOE) – and is therefore postponing its decision out until March 5.
“Within 45 days of the publication of the notice of filing of a proposed rule change, or within such days [a] longer period of up to 90 days, as the Commission may determine if it so determines [a] a longer period is appropriate… the Commission will either approve the proposed rule change, disapprove the proposed rule change, or initiate a proceeding to determine whether the proposed rule change should be disapproved.
The 45th day after publication of the notice for this proposed rule change is January 20, 2024.
The Commission extends this 45-day period.”
In December, the SEC asked the public what they thought of Fidelity’s potential Ethereum ETF.
At the time, Fidelity said approval of the ETF would be a big win for U.S. investors because it would provide security beyond that of even centralized exchange platforms.
“[The] approval of a Spot ETH ETP (exchange traded product) would represent a major win for the protection of US investors in the crypto asset space.
The Trust, like all other series of Commodity-Based Trust shares, is designed to protect investors against the risk of losses due to fraud and insolvency arising from holding digital assets, including ETH, on centralized platforms. ”
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