Fidelity Seeks Approval for Its Ethereum (ETH) ETF

Fidelity Investments, a major player in financial services, has sparked significant interest by seeking approval from the Securities and Exchange Commission for its proposed exchange-traded fund (ETF) centered around Ethereum’s native token, ETH. The Fidelity firm, managing assets totaling $4.5 trillion, has joined the ranks of firms seeking approval for an exchange-traded fund (ETF).

In a submission to the United States SEC, Fidelity suggests the listing and trading of Fidelity Ethereum Fund shares on the Cboe BZX Exchange. The filing indicated:

“As indicated by the Registration Statement, every share will signify a portion of an undivided ownership stake in the Trust’s net assets. The Trust’s assets will primarily comprise ETH held under the supervision of the Guardian on behalf of the Trust.”

The filing asserted that citizens of the United States lack a less precarious path to expose themselves to ETH. It additionally argued that the current means of accessing digital assets involve encountering risks, legal complexities, and technical uncertainties.

Meanwhile, it acknowledged that European investors have access to products trading on regulated exchanges, granting exposure to various crypto assets.

Furthermore, the submission suggests that if an Ether ETF had been accessible to U.S. citizens, the losses incurred from companies that are no longer in operation, like Celsius Network, would be considerably lower.

Fidelity Joins the ETF Race Following BlackRock’s Move

Fidelity made its move following the latest update about BlackRock officially submitting a filing for a spot Ether ETF, known as the iShares Ethereum Trust, to the SEC on November 16.

Just the week before, BlackRock went ahead and got the iShares Ethereum Trust officially registered with Delaware’s Division of Corporations. Interestingly, this step followed nearly six months after they submitted their application for a spot in Bitcoin ETF.

The Significance of ETF Approval in the Crypto Landscape

Passionate crypto supporters eagerly anticipate the SEC’s approval of ETF applications, frequently citing potential market manipulation as a primary concern.

Crypto enthusiasts optimistic about the future believe that Exchange-Traded Funds (ETFs) holding BTC or ETH can potentially bring about a significant transformation in the crypto market. The reasoning behind this optimism lies in the belief that such ETFs could simplify the journey for mainstream investors in the crypto world.

Furthermore, in its submission, Fidelity highlighted the absence of a regulated U.S. exchange-traded option for U.S. investors seeking exposure to ETH. The substantial financial institution went on to assert that the current avenues for gaining token exposure involve facing risks related to legal uncertainties and technical aspects.

Fidelity firmly believes that the Endorsement of a spot Ether ETF would mark a significant triumph for safeguarding U.S. investors in the cryptocurrency realm.

Fidelity’s Assurance in Ethereum ETF Success

Fidelity joined the ETF competition in June by submitting paperwork for a Bitcoin ETF, aligning with BlackRock’s simultaneous entry into the field. The company holds a positive outlook on regulatory approval, expressing confidence in the ongoing dialogues between Grayscale and the SEC regarding their suggested product.

Chris Kuiper’s recent discussion highlighted Fidelity’s keen interest in Ethereum, signaling a strategic move within the realm of digital assets. Kuiper delved into the growing importance of digital assets and envisioned their potential for continued growth. Fidelity’s proactive stance is evident in its recent move to apply for a Spot Ethereum Exchange-Traded Fund (ETF).