Fidelity Ether ETF delayed as more leveraged Bitcoin ETF bids flood in

The United States securities regulator has delayed its decision on asset manager Fidelity’s Ether (ETH) exchange-traded fund (ETF) bid, while another five leveraged Bitcoin (BTC) ETFs have just been filed with the regulator for approval. 

The Securities and Exchange Commission said on Jan. 18 that it was extending its deliberation period by another 45 days “so that it has sufficient time to consider the proposed rule change and the issues raised.”

The SEC marked March 5 as the next date for a decision. Bloomberg ETF analyst James Seyffart said in a Jan. 18 X (Twitter) post he “completely expected” the delay.

“Dates that really matter are late May in my view,” he added, referring to the SEC’s May 23 final deadline for approving or denying VanEck’s Ether ETF. Some analysts predict the SEC could approve a number of pending spot Ether ETF bids simultaneously as it did for spot Bitcoin ETFs.

Meanwhile, Direxion filed for five Bitcoin ETFs with the SEC on Jan. 18, joining rivals ProShares — which filed for five leveraged Bitcoin-tracking ETFs on Jan. 16 — and REX Shares, which filed for six leveraged Bitcoin ETFs on Jan. 3.

Direxion’s filing shows plans for 1x, 1.5x and 2x long leveraged Bitcoin funds and one of each again for short leveraged funds.

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“Leveraged Bitcoin ETFs may soon outnumber long only,” Bloomberg ETF analyst Eric Balchunas wrote in a Jan. 18 X post in response to the filing. “Pretty sure that’s never happened [before].”

Related: Spot Bitcoin ETFs one week on: BTC sells off, but ETFs reap success

Opinions are split on the likelihood of the SEC approving spot Ether ETFs at all.

Balchunas told Cointelegraph earlier this month that he’s pinning a 70% chance of approval by May for spot Ether ETFs based on the SEC’s final deadline for VanEck’s fund.

However, Morgan Creek Capital co-founder and CEO Mark Yusko told Cointelegraph the SEC is still hostile toward crypto despite approving Bitcoin ETFs.

He added the regulator may also class ETH as a security, unlike Bitcoin, which SEC Chair Gary Gensler previously said he considers a commodity.

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