The cryptocurrency market has seen a huge surge in interest around ethereum spot ETFs and Fidelity Investments has joined the race with its most recent filing.
Fidelity Investments Files for eth Spot ETF
The American multinational financial services corporation, Fidelity Investments, has decided to actively get involved in the current ethereum ETF mania. The mutual fund company has officially applied for an ethereum spot exchange-traded fund (ETF) to the United States Securities and Exchange Commission (SEC).
The new ethereum ETF filing is the second ETF the investment company has filed with the US SEC. Previously, Fidelity Investment Filed for bitcoin Spot ETF which is currently still awaiting SEC approval.
Fidelity Investment’s ethereum ETF filing on Friday conveyed several different details to the US SEC. The financial services company outlined the listing and trading framework for Trust shares on the stock exchange.
According to the filing, the Fidelity Investment Backed Trust is distinguished by being recognized as an investment company under investment company laws. Additionally, the filing clarifies that the Trust should not be considered a commodity group as defined by commodity laws.
The need for regulatory clarity in the presentation depends on the present legal situations Between the US SEC and various crypto exchanges and industry financial organizations.
“The Exchange proposes to list and trade the shares of the Fidelity ethereum Fund in accordance with BZX Rule 14.11(e)(4), which governs the listing and trading of commodity-based fiat shares on the Exchange,” the filing states.
He also added:
“According to the Registration Statement, the Trust is not an investment company registered under the Investment Company Act of 1940, as amended,’ nor a commodity pool for purposes of the Commodity Exchange Act. (“CEA”), and neither the Trust nor the Sponsor is subject to regulation as a commodity pool operator or commodity trading advisor in relation to the Shares.”
Fidelity outlines innovative structure in its ethereum ETF
Similar to BlackRock ethereum Spot ETF Presentation presented on Thursday, Fidelity Investments has provided a very detailed description of the structure of its proposal ethereum ETF as well as their use cases.
In the filing, Fidelity stated that the unique structure of the Trust ensures that each share issued by the company carries a fractional, undivided beneficial interest in the overall net assets of the Trust. Furthermore, the assets of the Trust would be held only eth/ethereum-price-holds-ground-1935/” rel=”nofollow noopener” target=”_blank”>eth tokens governed by the Custodian designated to administer the Trust.
“Each share shall represent a fraction of an undivided beneficial interest in the net assets of the Trust. The assets of the Trust will consist of eth held by the Custodian on behalf of the Trust. The Trust generally does not intend to hold cash or cash equivalents. However, there may be situations in which the Trust unexpectedly holds cash on a temporary basis,” the document states.
<img decoding="async" class="aligncenter size-medium" src="https://www.tradingview.com/x/eOxnrQRS/" alt="Tradingview.com ethereum Price Chart (Fidelity Investments Spot ETF)” width=”2650″ height=”1742″/>
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