Fidelity, a prominent asset management company with over $4.5 trillion in assets under management, has formally filed an application for the establishment of a Spot ethereum exchange-traded fund (ETF).
The decision is a response to recent action taken by BlackRock, an asset management company, which filed its bitcoin-product-delayed-as-fidelity-joins-blackrock-and-grayscale-in-ethereum-etf-race-202311172359″ target=”_blank” rel=”nofollow”>Applying for an ethereum Exchange Traded Fund (ETF) last week.
Fidelity is seventh on the list
Fidelity Investments has recently positioned itself as the seventh asset management in the United States to implement the aforementioned product.
According to the SEC’s Form 19b-4 filing, the Fidelity ethereum ETF is called the “Fidelity ethereum Fund” and is designed to track the performance of ethereum. If approved, the ETF will trade under the BZX rule, the company revealed.
Update: @Fidelity joins the place ethereum?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#ethereal ETF Race filing a 19b-4 with @CBOE https://t.co/rxNEzpzh3g pic.twitter.com/o96XspPDEP
-James Seyffart (@JSeyff) November 17, 2023
Each share will reflect a portion of the undivided beneficial interest in the net assets of the Fidelity eth Fund, as shown in the Registration Statement. eth held by the New York Department of Financial Services on behalf of the Fidelity ethereum Fund will constitute the assets of the Trust.
The Importance of Spot ETFs
Spot ETFs play a key role in significantly expanding the reach of cryptocurrencies for the average investor, aligning with the increasingly prominent goal of asset managers such as BlackRock, Grayscale and other industry players.
Despite concerted efforts by regulatory bodies like the SEC to counter this trend, the push to democratize access to cryptocurrency investments has remained strong.
eth market cap currently at $232 billion on the weekly chart: TradingView.com
At the forefront of the cryptocurrency market, bitcoin and ethereum stand as two of the most prominent digital assets, with substantial trading volumes and market values.
Drawing a parallel to bitcoin, ethereum is poised for a potentially significant rise in value in the next 24 hours, fueled by the Fidelity filing announcement, marking a development that could significantly impact the cryptocurrency landscape.
eth up 6.2% on weekly chart
At the time of writing, eth was trading at $$1,930an increase of 2.3% in the last 24 hours and a decent increase of 6.2% in the last seven days, Coingecko data shows.
Meanwhile, citing a section of the court ruling in the legal battle between Grayscale and the SEC, ethereum-etf” target=”_blank” rel=”nofollow”>Fidelity Investments is optimistic that you will receive permission.
Update: @Fidelity joins the place ethereum?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#ethereal ETF Race filing a 19b-4 with @CBOE https://t.co/rxNEzpzh3g pic.twitter.com/o96XspPDEP
-James Seyffart (@JSeyff) November 17, 2023
The court argued that the SEC lacked reasonable justification to deny Grayscale’s request to convert its well-known bitcoin Trust into a full-fledged bitcoin exchange-traded fund (ETF), particularly in light of its prior approval of futures linked to btc.
As a result, the court ordered a review of the SEC ruling and current information suggests that the SEC and Grayscale are still in talks about the suggested product.
Emerging Prominence of crypto Assets
Fidelity has openly expressed its admiration for ethereum. In a recent discussion, Chris Kuiper, the company’s research director, examined the emerging importance of digital assets and projected their potential for further expansion in the foreseeable future.
The company’s hope that eth will be used for large-scale transactions in the future is expressed in more detail in Fidelity’s Spot ethereum ETF app.
(The content on this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk.)
Featured image from Consensys
