Fidelity’s Ethereum ETF Filing
In a filing submitted to the United States Securities and Exchange Commission (SEC) on November 17, Fidelity outlined its plans to list and trade shares of the Fidelity Ethereum Fund on the Cboe BZX Exchange. According to the Registration Statement, each Share will represent a fractional undivided beneficial interest in the Trust’s net assets, which will consist of ETH held by the Custodian on behalf of the Trust.
There are now seven entrants in the list of filers for a spot Ethereum ETF, which include BlackRock, Hashdex, Grayscale, and VanEck.
Update: Fidelity joins the spot Ethereum ETF race by filing a 19b-4 with Cboe.
The development comes after BlackRock filed for a spot ETH ETF – the iShares Ethereum Trust. Interestingly, Fidelity filed for a spot Bitcoin ETF in June after BlackRock entered the game.
The Importance of Exchange-Traded Vehicles for Crypto
Fidelity emphasized the absence of a low-risk avenue for US citizens to expose themselves to ETH and digital assets, citing the lack of such US-regulated exchange-traded vehicles. It compared the situation with Europe, stating that European investors have access to products trading on regulated exchanges, offering exposure to a broad range of spot crypto assets.
According to the firm, this contrast underscores the need for a similar avenue for US investors.
“To this point, approval of a Spot ETH ETP would represent a major win for the protection of US investors in the crypto asset space.”
Fidelity’s proposal seeks to address these challenges by tackling fraudulent and manipulative practices. Referencing Section 6(b) of the Act, particularly Section 6(b)(5), the firm is committed to safeguarding investors, promoting a free and open market, and serving the public interest.
The document also referenced the court ruling involving Grayscale, where the court questioned the SEC’s rationale for rejecting spot crypto ETFs while allowing futures-based products.
Hot Take
Fidelity’s entry into the Ethereum ETF market signals increasing competition among financial giants, reinforcing the growing mainstream interest in cryptocurrencies. The move also highlights the demand for regulated exchange-traded vehicles for crypto assets, pointing to a potential shift in the cryptocurrency investment landscape.
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