The U.S. Securities and Exchange Commission (SEC) is postponing a decision on an application by investment giant Fidelity to launch a spot Ethereum ETF.

Initially set for a decision by January 20, 2024, the Commission has extended its deliberation period by another 45 days until March 5.

Fidelity ETH ETF Delayed

The United States SEC has announced a delay in the decision to approve Fidelity’s proposed spot ether ETF application.

According to a Jan.18 filing, the SEC “finds it appropriate to designate a longer period within which to take action on the proposed rule change,” so that it has “sufficient time to consider the proposed rule change and the issues raised therein.” The new deadline for a decision from the SEC is on March 5, 2024.

Influential Bloomberg Intelligence ETF analyst James Seyffart posited in a Thursday post that the delay was “completely expected,” adding that, “Dates that really matter are late May in my view.” May is the month the SEC must make a final decision for several ETH ETF applications.

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Fidelity filed paperwork for its spot Ethereum ETF back in November 2023, joining the likes of several other firms behind the BTC ETFs, including BlackRock, Ark Invest/21shares, and VanEck.

Promising Prospects For Spot Ether ETF Approval

Following the approval of Bitcoin ETFs on Jan.10, experts have tipped Ethereum as the next likely candidate to get a spot-based ETF in the U.S.

A spot-based ETF invests in the actual cryptocurrency, allowing investors to gain exposure to the asset without the hassle of storing it themselves. So, similar to spot BTC ETFs, potential spot ETH ETFs will open floodgates to institutional and retail capital.

Seyffart’s colleague Eric Balchunas believes the probability of the SEC approving an Ethereum ETF by May is 70%. As per Balchunas, the SEC’s previous approval of ether futures-based ETFs in September 2023 will compel the regulator to give the green light since its approval of Bitcoin futures ETFs resulted in a court order to reevaluate Grayscale’s bid to convert GBTC into a spot Bitcoin ETF.

A likely approval of an ether exchange-traded fund coupled with the upcoming Dencun upgrade, which promises to improve the blockchain’s scalability, could launch ETH to stratospheric new heights in 2024.