Competition from BlackRock has intensified as Fidelity, a renowned financial giant with $4.5 trillion in assets under management, has filed for an ethereum exchange-traded fund (ETF).
Fidelity bets on the ethereum ETF
in a presentation Filed with 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. Pursuant to the Registration Statement, each Share will represent a fractional undivided beneficial interest in the net assets of the Trust, which will consist of eth held by the Custodian on behalf of the Trust.
There are now seven participants on the list of applicants for an ethereum spot ETF, including BlackRock, Hashdex, Grayscale, and VanEck.
Update: @Fidelity joins the place ethereum?src=hash&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>#ethereal ETF Race filing a 19b-4 with @CBOE https://t.co/rxNEzpzh3g pic.twitter.com/o96XspPDEP
-James Seyffart (@JSeyff) November 17, 2023
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.
The need for publicly traded vehicles for cryptocurrencies
Fidelity emphasized the absence of a low-risk avenue for US citizens to gain exposure to eth and digital assets, citing the lack of such exchange-traded vehicles regulated by the US. It compared the situation to Europe and stated that European investors They have access to products that are traded on regulated exchanges, offering exposure to a wide range of spot cryptoassets.
According to the firm, this contrast underscores the need for a similar avenue for US investors.
“To this point, the approval of a Spot eth ETP would represent a major victory for the protection of US investors in the cryptoasset space.”
Fidelity’s proposal seeks to address these challenges by combating fraudulent and manipulative practices. Referring to Section 6(b) of the Act, in particular Section 6(b)(5), the company is committed to safeguarding investors, promoting a free and open market and serving the public interest.
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.
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