Fidelity, an asset management firm that oversees $4.5 trillion in assets, has become the latest company to seek approval for a spot Ethereum (ETH) exchange-traded fund (ETF).
in a presentation With the United States Securities and Exchange Commission (SEC) on November 17, Fidelity proposes to list and trade shares of the Fidelity Ethereum Fund on the Cboe BZX Exchange.
"In accordance with the Registration Statement, each Share will represent a fractional 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."
Update: @Fidelity joins the place #ethereal ETF Race filing a 19b-4 with @CBOE https://t.co/rxNEzpzh3g pic.twitter.com/o96XspPDEP
-James Seyffart (@JSeyff) November 17, 2023
The filing argues that US citizens lack a low-risk avenue to expose themselves to ETH:
โUS retail investors have lacked a regulated, publicly traded vehicle to gain exposure to ETH.โ
Furthermore, he argued that the existing methods to access the digital asset involve facing counterparty risks, legal uncertainty and technical risks.
Meanwhile, he noted that investors across Europe have access to products that trade on regulated exchanges and provide exposure to a wide range of spot crypto assets.
On August 15, Cointelegraph reported that the first European spot Bitcoin ETF, the Jacobi Bitcoin ETFwas approved to go live on the Euronext Amsterdam stock exchange.
Additionally, the filing proposes that if an Ether ETF had been available to US citizens, the losses incurred by now-banned companies like FTX, Celsius Network, and BlockFi would be considerably lower:
โIf a Spot ETH ETP were available, it is likely that at least some of the billions of dollars tied up in those proceedings would still reside in the brokerage accounts of US investors.โ
Related: BlackRock Maintains SEC Has No Reason to Treat Crypto Futures and Spot ETFs Differently
Fidelity's filing comes after recent news that BlackRock officially applied for an Ether spot ETFiShares Ethereum Trust, before the SEC on November 16.
BlackRock's presentation comes almost a week later registered the iShares Ethereum Trust with the Delaware Division of Corporations and nearly six months after it filed its Bitcoin Spot ETF application.
This is a developing story and more information will be added as it becomes available.
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