SEC delays decision on Fidelity’s spot Ethereum ETF

abdelaziz Fathi

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Fidelity’s proposal for a spot Ethereum exchange-traded fund (ETF). The new deadline for the SEC’s decision is now set for March 5, as indicated in a recent filing.


This extension allows the SEC more time to thoroughly consider Fidelity’s proposal and the broader implications of approving a spot Ethereum ETF. Fidelity initially filed for the Fidelity Ethereum Fund in November, citing a past court ruling that questioned the SEC’s rationale for rejecting spot crypto ETFs while allowing futures-based products.

The SEC’s move comes after its recent authorization of 11 spot bitcoin ETFs, sparking discussions in the industry about the possibility of a spot Ethereum ETF being next. Fidelity is not alone in pursuing a spot Ethereum ETF; it joined industry giant BlackRock in this endeavor late last year. The applications for these spot products came shortly after the launch of ether futures ETFs.

Nevertheless, the SEC’s decision to allow futures-based ETFs might indicate the regulator’s perspective on Ethereum. Specifically, the agency might be leaning towards treating Ethereum similarly to Bitcoin, implying that it may not be regulated as a security.

Fidelity’s filing highlights the investor protection benefits amidst a landscape where U.S. investors are currently adopting higher-risk strategies to gain cryptocurrency exposure. “U.S. retail investors have lacked a U.S. regulated, U.S. exchange- traded vehicle to gain exposure to ETH,” it says.

Citing the recent Grayscale court decision, Fidelity’s filing points out inconsistencies in the SEC’s stance, noting the agency’s approval of futures-based crypto ETFs while rejecting spot-based ones. The asset management behemoth, with $4.5 trillion under management, is advocating for a regulated product that could mitigate risks associated with unregulated crypto entities, as seen with the failures of FTX, Celsius Network, and BlockFi.

“To this point, approval of a Spot ETH ETP would represent a major win for the protection of U.S. investors in the crypto asset space. If a Spot ETH ETP was available, it is likely that at least a portion of the billions of dollars tied up in those proceedings would still reside in the brokerage accounts of U.S. investors,” the filing reads.

Fidelity’s move comes hot on the heels of BlackRock’s foray into the spot Ether ETF arena, signaling growing interest from major asset managers in providing crypto-based products. The filing reveals that Fidelity intends to list the Fidelity Ethereum Fund on the Cboe BZX Exchange, offering investors a regulated avenue to invest in Ether.

The quest for a spot Ether ETF in the U.S. is gaining momentum, with Fidelity becoming the seventh firm to seek SEC approval, joining others like VanEck, 21Shares, ARK Invest, Hashdex, Grayscale, and Invesco Galaxy.

  • Read this next

    Digital Assets

    Bitcoin nears $62,000, sparking retail buying frenzy

    Bitcoin dashed past the $61,000 barrier on Wednesday, a peak it hadn’t touched since the waning days of November 2021.

    Market News

    OPEC+ Extension of Oil Output Cut Causes Rally

    The dynamics surrounding crude oil are indeed fascinating, given its unique role as both a globally traded commodity and a vital energy source deeply influenced by the OPEC+ alliance’s decisions.

    Institutional FX

    DKK reports 226% growth in 2023 with eyes on African expansion

    “Our numbers are beginning to show how we are powering, the growth required by emerging markets, and we plan for the success of our strategies to continue to thrive in 2024.”

    Industry News

    ‘WTF’ as in ‘What The Fraud?’, Sumsub’s new podcast on digital fraud

    “We found a lack of informative podcasts talking about digital fraud threats and prevention for business owners. So, we decided to dive in and share our expertise along with industry top minds in the ‘What The Fraud?’ podcast.”

    Digital Assets

    Coin Metrics integrates market data from Cboe Digital

    “We are pleased to work with Coin Metrics and believe that having quality and timely data, and systems to analyze that data, will help crypto markets mature as well as evolve to become a core component of a diversified investment portfolio. We are focused on providing access and solutions to the spot and derivatives crypto market in a way which mirrors an investor’s experience with traditional markets.”


    AU10TIX launches KYB solution to address regulatory requirements

    “Our customers have been requesting a comprehensive KYB solution, because money laundering and fraud have become far too prevalent in the corporate world. Our unified KYB/KYC solution is essential for identifying bad actors and maintaining a safe business environment in 2024.”

    Digital Assets

    Japan Is Rapidly Emerging As A Global Leader In Compliant Crypto Payments

    Japan is often hailed as one of the most forward-thinking nations in the crypto industry, with its government taking a very positive stance on the potential of concepts such as Web3. 

    Digital Assets

    Kraken launches institutional arm

    “If you already work with Kraken, you know how much we care about offering high quality products and a client-first experience. We’ve been the leading crypto exchange for more than a decade and through Kraken Institutional, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions.”


    Centroid integrates with brokerage solutions provider GTN

    “We are thrilled to integrate GTN into Centroid Bridge, our multi-asset connectivity bridging engine. This integration allows our clients to gain access to the wide range of multi-asset products offered by GTN.”