Fidelity’s Ethereum (ETH) ETF Filing
In a filing submitted to the United States Securities and Exchange Commission (SEC) on November 17, Fidelity outlined its intends to list and trade shares of the Fidelity Ethereum (ETH) 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 Ethereum (ETH) held by the Custodian on behalf of the Trust.
There are now 7 entrants in the list of filers for a spot Ethereum (ETH) ETF, which include BlackRock, Hashdex, Grayscale, and VanEck.
Update: Fidelity joins the spot Ethereum (ETH) ETF race by filing a 19b-4 with Cboe.
The development comes after BlackRock filed for a spot Ethereum (ETH) ETF – the iShares Ethereum (ETH) Trust. Interestingly, Fidelity filed for a spot Bitcoin (BTC) 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 United States citizens to expose themselves to Ethereum (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 cryptocurrency assets.
According to the firm, this contrast underscores the need for a similar avenue for United States investors.
“To this point, approval of a Spot Ethereum (ETH) ETP would represent a major win for the protection of United States investors in the cryptocurrency asset space.”
Fidelity’s proposition 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 likewise referenced the court ruling involving Grayscale, where the court questioned the SEC’s rationale for rejecting spot cryptocurrency ETFs while allowing futures-based products.
Hot Take
Fidelity’s entry into the Ethereum (ETH) ETF market signals increasing competition between financial giants, reinforcing the growing mainstream interest in digital currencies. The move likewise outlines the demand for regulated exchange-traded vehicles for cryptocurrency assets, pointing to a probable shift in the digital currency investment landscape.
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.
