The U.S. Securities and Exchange Commission asked the public to comment on a proposed rule change that could allow asset management company Fidelity to offer shares of its Ether spot (ETH) exchange-traded fund or ETF.
In a Nov. 30 notice, the SEC saying “Interested persons” can comment on Fidelity's offering, proposing the Cboe BZX Exchange listing and trade shares of its Fidelity Ethereum Fund. Fidelity first submitted for approval of the fund on November 17, becoming one of many companies looking to throw their hat in the ring for a spot crypto ETF in the United States.
Fidelity has long been known to have entered the spot ETF race, but this filing *essentially* starts the ~240+ day clock on its spot. #Ethereum ETF. Just one more step in the process. Will have final deadlines in the coming weeks https://t.co/0C6NKcxNNz pic.twitter.com/gdW9ZQDgs9
-James Seyffart (@JSeyff) November 30, 2023
The filing noted that investors in other countries, "including Germany, Switzerland and France," had opportunities to gain exposure to Ether through exchanges that offer exchange-traded products. At the same time, the United States “lacked a regulated, publicly traded vehicle.” Members of the public will have 21 days to submit comments following publication of the filing in the Federal Register.
“American investors [...] "They are left with fewer and more risky means of exposing themselves to the ether," the document says. “The lack of an ETP that holds ETH in cash [...] “exposes US investors’ assets to significant risk because investors who would otherwise seek exposure to crypto assets through a Spot ETH ETP are forced to find alternative exposure through generally riskier means.”
The presentation added:
"The approval of a Spot ETH ETP would represent a major victory for the protection of US investors in the crypto asset space."
Related: Grayscale Files for New Ether Futures ETF – Official
The SEC has not approved any listing of a spot cryptocurrency exchange-traded product or fund for the US markets despite requests from many companies dating back years. Exchanges began listing and trading shares of Bitcoin-linked ETFs (btc) futures in October 2021 and nine Ether futures ETFs debuted in October 2023.
Many reports and experts have suggested that the SEC could be nearing a decision on a spot crypto ETF to list on US markets. If approved, it would be one of the most important positive trends towards widespread adoption of cryptocurrencies. At the time of this publication, the commission had not given the green light to any spot investment vehicles in Bitcoin or Ether.
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