ethereum Spot Exchange Traded Funds (ETFs) We may be seeing a decline in approval odds, but there is still a wave of optimism among several financial management firms applying for the products.
Fidelity Amends Its ethereum Spot ETF Application
Amid the hype surrounding ethereum spot ETFs, the financial management giant Fidelity has recently modified its application for foreign exchange products, demonstrating confidence in approval by the United States Securities and Exchange Commission (SEC).
The ETF Store Chairman and President Nate Geraci took to social media platform share update with the crypto community today. According to Nate Geraci, the amendment contains a “deeper examination” of the connection between spot and futures markets.
It is worth noting that Fidelity participated in the competition to introduce an ethereum ETF in November last year. Other ETF applicants include Grayscale, Ark Invest, 21Shares and BlackRock, among others.
Geraci mentioned that the update cites the acceptance of a bitcoin Spot ETF. He He also shared a screenshot of the latest presentation, although he noted that the passage is the “money page.” This is because “ethereum ETF issuers won't let the SEC get away with this.”
In the filing, Fidelity states that “given the strong correlation between ethereum and bitcoin futures offered by the Chicago Mercantile Exchange (CME), applying the same rationale that the SEC used to approve a bitcoin spot product suggests that the test is fulfilled for this proposal. “
As the “SEC anticipates that CME surveillance will help identify potential cases of deceptive and manipulative acts,” the financial firm argues that “ethereum ETFs should be identified using the same logic.”
By updating its app, Fidelity plans to allow traders and users of its proposed ethereum fund to invest a portion of the assets. The registration statement state that the “Sponsor may from time to time wager a portion of the Fund's assets through one or more accredited wagering providers, some of which may be affiliates of the Sponsor or Betting Providers.”
Additionally, “the Fund would earn specific network rewards in the form of Ether tokens” for any staking activity it might perform. These rewards could be considered “income to the Fund” as compensation for services provided.
Grayscale Updates Its eth ETF Proposal
Fidelity is the latest company to modify its ethereum spot ETF application after financial giant Grayscale. Friday, grayscale reported that the company had updated its product proposition, marking a vital step in ETHE's listing on NYSE Arca.
As with spot bitcoin ETFs, Grayscale believes the case for eth spot ETFs is just as strong, and investors demand and deserve exposure to eth in this regard.
Pursuant to the guidelines set forth in the Securities Exchange Act of 1934, as amended, Section 19(b) and Rule 19b-4, NYSE Arca intends to list and trade the shares of the following pursuant to NYSE Rule 8.201 .
Featured image from iStock, chart from Tradingview.com