Fidelity Investments Enters the Cryptocurrency Market
Fidelity Investments has applied for a spot Ethereum (ETH) exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC) to list and trade shares of the Fidelity Ethereum (ETH) Fund on the Cboe BZX Exchange.
Fidelity and BlackRock’s Push for Regulatory Approval
The Fidelity Ethereum (ETH) Fund will hold Ethereum’s ether (ETH) and will trade in compliance with the Cboe BZX Rule. This comes after BlackRock likewise filed for an Ethereum (ETH) ETF. If approved, ETFs could make it easier for the average individual to invest in crypto-linked assets. Previously, United States regulators have not approved any spot cryptocurrency 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 (ETH) Fund on the Cboe BZX Exchange.
Increasing Access for United States Investors
Fidelity intends to bring a low-risk option for United States citizens to participate with Ethereum (ETH) and digital assets, highlighting the lack of regulated exchange-traded vehicles. They likewise want to address fraudulent and manipulative practices in the industry and provide a similar avenue for United States investors as in Europe.
Regulatory Challenges in Approving Cryptocurrency ETFs
In the meantime, the SEC has faced criticism for rejecting Grayscale Investments’ app to establish a spot Bitcoin (BTC) 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 Cryptocurrency ETFs in the U.S.
The race for cryptocurrency ETFs approval involves major financial players, but uncertainties remain. Although while there is hope after Grayscale’s legal victory, specialists warn of a challenging road ahead for Bitcoin (BTC) ETFs in the US.
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