Fidelity Enters Ethereum ETF Approval Race Amid Increasing Competition

Fidelity Enters Ethereum ETF Approval Race Amid Increasing Competition


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.

READ NOW
US Banks Brace for $930B Debt Avalanche as Interest Rate Hopes Dim 😱

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.

READ NOW
Ola Cabs gears up for $500M IPO with bank appointments 🚀

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

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. Lolacoin.org 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.

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.

READ NOW
Tether introduces USDT on Ton Blockchain, reaching Telegram users! 🌐❤️
Fidelity Enters Ethereum ETF Approval Race Amid Increasing Competition
Author – Contributor at Lolacoin.org | Website

Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content. Owen’s contributions serve as a valuable guide for both seasoned enthusiasts and newcomers, aiding them in navigating the dynamic world of cryptocurrencies with well-researched perspectives. With a meticulous commitment to precision, he empowers informed decision-making in the ever-evolving crypto domain.

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

Latest Crypto News