Fidelity Joins Race for Ethereum ETF
Fidelity has made a significant move by filing for a spot Ethereum exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC), following its active pursuit of a spot Bitcoin ETF. This filing, submitted by Cboe BZX, outlines a proposed rule change that would enable the listing and trading of shares of Fidelity’s planned Ethereum ETF. This proposal mirrors Fidelity’s previous spot Bitcoin ETF filing submitted in June.
Fidelity’s Ethereum ETF Application
The United States Securities and Exchange Commission will need to approve the proposed Fidelity Ethereum Fund, which would be listed by an exchange owned by Cboe Global Markets. Fidelity’s filing comes just days after asset manager BlackRock submitted its own spot Ethereum ETF filing on the 15th of November, in addition to its spot Bitcoin ETF application from June.
Competition in ETF Applications
Fidelity and BlackRock are not the only financial giants vying for spot Bitcoin and Ethereum ETF approvals. Other asset managers and financial institutions have also submitted applications that are currently under consideration by the SEC. The decision regarding spot Bitcoin ETF applications, such as the one from ARK Invest, is expected to be made by the 10th of January, 2024, which could set a precedent for other similar applications.
Both Fidelity and BlackRock are aiming to create ETFs that would provide investors with simple and easy access to cryptocurrencies like Bitcoin and Ether. The approval of these ETFs could potentially have a significant impact on the crypto market, making digital assets more accessible to a wider range of investors through traditional brokerage channels. In theory, this could result in a surge of investments in digital assets through the trading of ETFs, similar to how ETFs are used to track the stock market and other traditional assets.
Hot Take: Potential Impact of Spot ETFs on Crypto Markets
The entry of major financial institutions like Fidelity and BlackRock into the ETF arena for cryptocurrencies signifies a significant shift in the investment landscape. The approval of spot Bitcoin and Ethereum ETFs could potentially change the game for crypto investing in the United States, leading to increased accessibility and investment in digital assets.
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