[NEWS] SEC postpones approval of Fidelity's Ethereum spot ETF application

On the 18th, the SEC (Securities and Exchange Commission) announced that it would postpone its decision on the Ethereum (ETH) spot ETF application submitted by major asset management company Fidelity. According to the filing, the decision will be postponed until March 5th.

Fidelity submitted an application for an Ethereum spot ETF to the SEC in November last year. In the proposal, it was pointed out that the SEC has approved a futures-based Ethereum ETF, but that there is "no consistent reason for rejecting an Ethereum spot ETF."

This is a reference to a court ruling made last August regarding Grayscale's conversion of Bitcoin spot ETFs. The ruling stated that the SEC must explain a legitimate reason why a Bitcoin spot ETF should not be approved, even though Bitcoin futures ETFs are permitted.

Fidelity joined the race to realize an Ethereum spot ETF late last year, along with major asset management company BlackRock. A month before, an Ethereum Futures ETF was approved and began operations.

The SEC stated that it had postponed its decision because it "needed sufficient time to consider the proposed rule changes and the issues raised in them, and determined that it was appropriate to take a longer period to act on the proposed rule changes."

The securities nature of Ethereum needs to be clarified for approval

Bloomberg ETF analyst James Seyffart said that the SEC's postponement of the decision was expected, and continued, "I think the really important date is late May."

Many analysts, including Seyffart, point out that it is necessary to clarify what product category Ethereum falls into legally.

Currently, the SEC continues to avoid making a clear statement on whether Ethereum is a security. Therefore, many believe that the talks will not move forward unless the nature of Ethereum as a financial product is first determined before deciding whether to approve an Ethereum spot ETF.

Reference:Announcement
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