Fidelity Enters Competition with BlackRock for Ethereum ETF Approval

Fidelity Enters Competition with BlackRock for Ethereum ETF Approval

Fidelity Investments Seeks Approval for Ethereum (ETH) ETF

Fidelity Investments, a leading financial services company, has submitted a filing to the Securities and Exchange Commission seeking approval to launch an exchange-traded fund (ETF) that will hold Ethereum (ETH) digital currency. This news comes on the heels of a similar app  from BlackRock, another major player in the financial services industry.

The proposed Fidelity Ethereum (ETH) Fund will function by tracking the price of Ethereum (ETH), the digital currency associated with the Ethereum (ETH) blockchain network. The ETF shares would be available for trading on the Cboe BZX Exchange under the ticker symbol ETHF.

According to Fidelity, the goal of the ETF is to track the performance of Ether, measured by the Fidelity Ethereum (ETH) Index, which represents the United States dollar price of ether based on trading activity across major ether trading platforms. This makes Fidelity the seventh company to file for a spot Ethereum (ETH) ETF, with BlackRock, Grayscale, 21Shares/ARK, VanEck, and Hashdex having filed earlier.

Navigating the Future of ATOM Tokenomics: Cosmos Faces a Crucial Fork

SEC Delays Decision on Bitcoin (BTC) ETFs

The submission of Fidelity’s ETF app  comes as the SEC has been under increasing pressure to approve a spot Bitcoin (BTC) ETF after permitting futures-based Bitcoin (BTC) ETFs a year ago. Proponents of digital currency argue that the approval of a spot ETF would create a safer way for mainstream investors to enter the digital asset market.

Nonetheless, the SEC recently announced a delay in its decision on two spot Bitcoin (BTC) ETFs, including one from Franklin Templeton and Worldwide X, after a similar delay involving Hashdex earlier in the week.

Elon Musk Criticizes Instagram and Business Insider in X: A Closer Look

Regulatory Hurdles for Ethereum (ETH) ETF

The proposed Ethereum (ETH) ETF will have to navigate regulatory challenges similar to those faced by previous attempts at Bitcoin (BTC) ETFs. The SEC typically requires surveillance-sharing agreements between an ETF’s listing exchange and the underlying spot market for an asset, and it is not clear whether the SEC views the ether futures market, launched in 2021, as mature enough to meet that standard.

Fidelity, which oversees over $11 trillion in customer assets, has been expanding its digital currency business since launching institutional digital currency trading and custody services in 2018. This move into ETFs comes after similar filings from rival asset managers like Invesco and Galaxy Digital earlier this year.

The Bitcoin Bull Market Has Just Begun, Claims This Metric

Hot Take: Fidelity Investment’s Cryptocurrency Expansion

It’s clear that Fidelity’s move to seek approval for an Ethereum (ETH) ETF marks its continued expansion into the digital currency market. With the growing demand for digital assets and an increasing number of retail investors seeking regulated investment vehicles for digital currencies, the entry of major financial institutions like Fidelity into this space could signal a new era for mainstream digital currency adoption.

The Future of FirmaChain: How this Coin Revolutionizes Digital Contract Management
Author – Contributor at | Website

Demian Crypter emerges as a true luminary in the cosmos of crypto analysis, research, and editorial prowess. With the precision of a watchmaker, Demian navigates the intricate mechanics of digital currencies, resonating harmoniously with curious minds across the spectrum. His innate ability to decode the most complex enigmas within the crypto tapestry seamlessly intertwines with his editorial artistry, transforming complexity into an eloquent symphony of understanding.

Paradigm’s Ethereum Layer-2 Blast Launch Causes ‘Crossed Lines’ with $535 Million Locked Up by Users
Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.

Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!

Email me the hottest Crypto news!

Latest Crypto News

Share via
Share via