The Securities and Exchange Commission (SEC) has delayed making a decision
TLDR
Fidelity’s proposed Ethereum fund, if approved, would allow direct investment into the cryptocurrency rather than futures contracts. It aims to capitalize on a court ruling last year stating the SEC failed to provide a clear rationale for rejecting spot crypto ETFs while allowing futures-based products. The delay indicates the regulator remains cautious, however, even after approving several spot bitcoin ETFs last week.T-Rex 1.5X Long Spot Bitcoin Daily Target ETF
T-Rex 1.75X Inverse Spot Bitcoin Daily Target ETF
T-Rex 1.75X Long Spot Bitcoin Daily Target ETF
T-Rex 2X Inverse Spot Bitcoin Daily… pic.twitter.com/eLFTiS1Gq9
— ETF Hearsay by Henry Jim (@ETFhearsay) January 3, 2024
While leveraged crypto ETF approvals may appear more likely in light of the recent spot bitcoin decisions, spot ether funds face a tougher path with more complex implications around cryptocurrency classification. The next few months will prove pivotal in determining the regulatory stance. For now, uncertainty persists even as heavy-hitting institutions line up to tap into surging investor demand should Ethereum ETF obstacles get cleared away.
