Fidelity seeks green light for Ethereum ETF, following BlackRock’s filing

The NFT Unicorn 1700266997_4ac6ae96-298c-4a80-9a97-285819eb9e1a Fidelity seeks green light for Ethereum ETF, following BlackRock's filing Crypto News

Fidelity, an asset management firm overseeing $4.5 trillion in assets, has become the latest firm to seek approval for a spot Ethereum (ETH) exchange-traded fund (ETF).

In a filing 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.  

“According to the Registration Statement, each Share will represent a fractional undivided beneficial interest in the Trust’s net assets. The Trust’s assets will consist of ETH held by the Custodian on behalf of the Trust.”

The filing argues that United States citizens lack a low-risk avenue to expose themselves to ETH. 

“U.S. retail investors have lacked a U.S. regulated, U.S. exchange- traded vehicle to gain exposure to ETH.”

It further argued that the existing methods for accessing the digital asset involve encountering counter-party risk, legal uncertainty, and technical risk.

Meanwhile, it noted that investors across Europe have access to products which trade on regulated exchanges and provide exposure to a broad array of spot crypto assets.

On August 15, Cointelegraph reported that the first European spot Bitcoin ETF, the Jacobi Bitcoin ETF, was approved to go live on the Euronext Amsterdam stock exchange. 

Fidelity’s filing comes after recent news that BlackRock officially filed for a spot Ether ETF, the iShares Ethereum Trust, with the SEC on Nov. 16.

Related: BlackRock argues SEC has no grounds to treat crypto futures and spot ETFs differently

BlackRock’s filing comes nearly a week after it registered the iShares Ethereum Trust with Delaware’s Division of Corporations and almost six months after it filed its spot Bitcoin ETF application.

This is a developing story, and further information will be added as it becomes available.

Source: Cointelegraph