SEC Seeks Public Comments on Fidelity’s Spot Ether ETF
The U.S. Securities and Exchange Commission (SEC) is inviting the public to provide feedback on Fidelity’s proposed spot Ether exchange-traded fund (ETF). The SEC published a notice to “solicit comments on the proposed rule change from interested persons.”
Fidelity’s Argument for the Spot Ether ETF
The filing argues that the absence of a spot Ethereum (ETH) fund exposes U.S. investors to significant risk. It states that investors are forced to either face the risks associated with accessing spot ether or use over-the-counter ether funds with high management fees and potentially volatile premiums and discounts.
21 Days to Comment
The SEC is requesting “written data, views, and arguments” regarding the proposed rule change. Interested individuals have 21 days to submit their comments.
The selected custodian for Fidelity’s Ethereum Trust is listed as FDAS, a New York State limited liability trust. Fidelity filed for a spot Ethereum ETF on November 17th, following BlackRock’s filing for their own spot ETF, iShares Ethereum Trust.
The Race for a Spot ETF
This development comes after a federal judge rejected the SEC’s decision to deny Grayscale Investment’s application for a spot Bitcoin ETF. As a result, several applicants, including VanEck Bitcoin Trust, Invesco Gallery Bitcoin ETF, and Wise Origin Bitcoin Trust, have pursued their own spot Bitcoin ETFs.
If approved, both spot Ethereum ETFs and spot Bitcoin ETFs could help integrate the crypto industry into America’s financial system. CryptoQuant data suggests that approving a spot Bitcoin ETF could increase market capitalization by $900 billion and push over $1 trillion into the overall crypto market.
Hot Take: Fidelity’s Spot Ether ETF Application
The SEC is seeking public comments on Fidelity’s proposed spot Ether ETF. This move follows the rejection of Grayscale Investment’s spot Bitcoin ETF application, prompting other applicants to enter the race. Approving these ETFs could bring the crypto industry closer to mainstream adoption in the U.S. market. Analysts believe that definitive deadline dates for Fidelity’s application will be announced in the coming weeks.
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