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Fidelity Investments has filed 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 await the green light from the SEC
According to its filing, the fund is a spot exchange-traded fund (ETF) that would hold ethereum ether (eth).
The ETF, if approved, will be listed in accordance with the Cboe BZX Ruler. Fidelity Ether ETF Boost Comes Next Black RockPresentation of the ethereum ETF. It is believed that ETFs could make it much easier for the average person to invest money in a crypto-linked asset.
Getting an ethereum spot ETF approved would represent a big win for cryptocurrency investors in the US, as regulators in the region have yet to approve any cryptocurrency spot ETFs. Fidelity Investments has reportedly expressed confidence in obtaining regulatory approval, citing an excerpt from the decision in the legal battle between Grayscale and SEC.
In fidelity presentationfiled on November 17 with the SEC, seek approval to list and trade shares of the Fidelity ethereum Fund on the Cboe BZX Exchange.
According to the Registration Statement, each share will represent a fractional undivided beneficial interest in the net assets of the Trust, predominantly comprising eth held by the Custodian on behalf of the Trust.
This move puts Fidelity among seven contenders, including BlackRock, Hashdex, Grayscale, and VanEck, vying for approval of an ethereum spot ETF.
Fidelity has highlighted the absence of a low-risk option for US citizens to interact with eth and digital assets, pointing to the lack of US-regulated exchange-traded vehicles.
He also draws a comparison with Europe, where investors have access to products on regulated exchanges, providing exposure to various spot crypto assets. Fidelity maintains that this disparity underscores the need for a similar avenue for U.S. investors.
Under the proposal, Fidelity aims to address issues related to fraudulent and manipulative practices.
SEC Rejects Spot crypto ETFs
In a court ruling, the US securities regulator has faced criticism for rejecting Grayscale Investments’ application to establish a spot bitcoin exchange-traded fund (ETF).
The court ruled that the feared regulator had not adequately justified its denial of Grayscale’s product and ordered a reconsideration of the decision. This verdict has the potential to open the door to the first product of its kind, allowing investors to gain exposure to the digital asset without the need to purchase the currency.
Following the court’s favorable ruling, Grayscale is pushing the SEC to quickly approve its ETF proposal. The SEC’s decision not to challenge its August court defeat regarding Grayscale’s application further improves the bitcoin ETF’s spot approval prospects.
Grayscale is operationally prepared to convert its bitcoin Trust into an ETF following SEC approval. The court’s final verdict has yet to be determined, raising uncertainty about the SEC’s approach to Grayscale’s application and other ETF filings from financial giants like BlackRock and others.
Mike Belshe, CEO of BitGo, expressed skepticism and expressed doubts about the imminent approval of a bitcoin spot ETF in the United States.
He attributes this skepticism to unresolved market structure issues and predicts additional rejections by the US Securities and Exchange Commission (SEC) for spot bitcoin ETFs. While there is a general belief among market experts that approval is on the horizon following Grayscale’s legal victory, Belshe warns of a challenging path ahead for bitcoin ETFs.
