Fidelity’s ambitious plan to introduce a spot Ethereum exchange-traded fund (ETF) faces a regulatory setback as the U.S. Securities and Exchange Commission (SEC) extends its decision timeline, putting the launch of the Wise Origin Ethereum Trust on hold.
The proposed Wise Origin Ethereum Trust aims to be a fund that mirrors the performance of Ether, the second-largest cryptocurrency by market capitalization. If approved, it would provide investors with a means to gain exposure to digital assets without direct ownership.
James Seyffart, an ETF analyst at Bloomberg, suggests that the SEC might opt to approve a batch of spot Ethereum ETFs, similar to its approach with Bitcoin. The pivotal date for this decision is set for May 23, coinciding with the deadline for the regulator’s verdict on VanEck’s Ethereum ETF application.
Recent developments saw the SEC greenlighting 11 spot Bitcoin ETFs, marking a significant milestone in allowing these funds to be traded in the U.S. for the first time. Prior to these approvals, the SEC had consistently rejected all spot Bitcoin ETF applications.
Interestingly, the approval of Bitcoin ETFs triggered a notable surge in Ether’s price, surpassing $2,600 for the first time since May 2022, according to CoinGecko data. However, Ether has experienced a 7% decline over the past week, settling at $2,436 at 12:30 p.m. ET. In the same timeframe, Bitcoin also saw a 6.4% drop, trading at $40,642.
While Fidelity’s Bitcoin ETF, among those receiving the SEC’s approval last week, has crossed the $1 billion mark, becoming the second fund to achieve this milestone.
