SEC Delays Decision on Fidelity's Ether ETF, New Bitcoin ETF Proposals Filed by Direxion
Summary:
The U.S. Securities and Exchange Commission (SEC) has delayed the decision on Fidelity's Ether (ETH) exchange-traded fund (ETF), extending its deliberation period for another 45 days, with a set decision date of March 5. Meanwhile, Direxion has submitted proposals for five leveraged Bitcoin ETFs. The final deadline for SEC's decision on VanEck's Ether ETF is May 23. Opinions vary on the likelihood of the SEC approving spot Ether ETFs, with Eric Balchunas of Bloomberg predicting a 70% chance of approval by May, while Morgan Creek Capital CEO Mark Yusko is more skeptical.
A decision on the Ether (ETH) exchange-traded fund (ETF) proposal from investment management firm Fidelity has been suspended by the U.S. Securities and Exchange Commission (SEC). Additionally, five leveraged Bitcoin (BTC) ETFs have freshly been submitted for the regulator's perusal. Responding to these developments, the SEC cited a need for more time—45 more days, to be specific—to fully contemplate the suggested rule modification and the criticisms it has spawned. The SEC is set to put forth a verdict by March 5. Noted ETF analyst for Bloomberg, James Seyffart, communicated his anticipation of such a delay via Twitter on January 18.
He opines that the crucial dates could land sometime around late May. This timeline lines up with the SEC's final decision deadline, May 23, for approval or rejection of VanEck's Ether ETF. Some market experts speculate that SEC might grant approval to a surge of on-hold spot Ether ETF offerings in a way similar to its approval of spot Bitcoin ETFs.
In related news, on January 18, Direxion set the stage by registering five Bitcoin ETFs with the SEC. This act follows the initiatives by its competitors, ProShares and REX Shares, who registered for five and six leveraged Bitcoin-linked ETFs on January 16 and January 3 respectively.
Direxion's filings indicate intentions to launch a trio of long leveraged Bitcoin funds with 1x, 1.5x and 2x levels as well as one short leveraged fund for each level. Commenting on this event via Twitter on January 18 was Bloomberg ETF analyst, Eric Balchunas, who observed a possible scenario where “Leveraged Bitcoin ETFs may soon outnumber long only.”
Opinions diverge on the prospect of SEC sanctioning spot Ether ETFs. Balchunas projected to Cointelegraph earlier this month a 70% possibility of the regulator approving spot Ether ETFs before the deadline for VanEck's fund in May. In stark contrast, Mark Yusko, Morgan Creek Capital's co-founder and CEO expressed doubts on whether the SEC, despite nodding to Bitcoin ETFs, may still view crypto unfavorably. Furthermore, he suggested the regulator might categorize ETH as a security, unlike Bitcoin, which SEC chair Gary Gensler characterized as a commodity in earlier comments.
Published At
1/19/2024 3:31:36 AM
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