Fidelity Investments Enters the Crypto Market
Fidelity Investments has applied for a spot Ethereum (ETH) exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) to list and trade shares of the Fidelity Ethereum Fund on the Cboe BZX Exchange.
Fidelity and BlackRock’s Push for Regulatory Approval
The Fidelity Ethereum Fund will hold Ethereum’s ether (ETH) and will trade in compliance with the Cboe BZX Rule. This comes after BlackRock also filed for an Ethereum ETF. If approved, ETFs could make it easier for the average person to invest in crypto-linked assets. Previously, U.S. regulators have not approved any spot crypto ETFs.
Fidelity expressed confidence in getting approval, citing the ruling in the Grayscale versus SEC legal battle. The filing, submitted on Nov. 17, seeks approval to list and trade the Fidelity Ethereum Fund on the Cboe BZX Exchange.
Increasing Access for U.S. Investors
Fidelity aims to bring a low-risk option for U.S. citizens to engage with ETH and digital assets, highlighting the lack of regulated exchange-traded vehicles. They also want to address fraudulent and manipulative practices in the industry and provide a similar avenue for US investors as in Europe.
Regulatory Challenges in Approving Crypto ETFs
Meanwhile, the SEC has faced criticism for rejecting Grayscale Investments’ application to establish a spot Bitcoin ETF. The court ruled that the SEC had not justified its denial and mandated a reconsideration of the decision. Grayscale is pressing the SEC for swift approval, but skepticism remains due to unresolved market structure issues.
Hot Take: Future of Crypto ETFs in the U.S.
The race for crypto ETFs approval involves major financial players, but uncertainties remain. While there is hope after Grayscale’s legal victory, experts warn of a challenging road ahead for Bitcoin ETFs in the US.
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