American investment management firm Fidelity Investments has applied to list its Ethereum spot Exchange Traded Fund (ETF) product with the Securities and Exchange Commission (SEC). With this filing, Fidelity Investments now ranks as the 7th asset manager making a move for the product in the United States.
Other asset managers that have filed to list Ethereum spot ETFs include VanEck, Ark Invest and 21Shares, Hashdex and Nasdaq, Grayscale, Invesco and Galaxy Digital, and BlackRock respectively.
The Fidelity Ethereum ETF
Per Form 19b-4 lodged with the SEC, the Fidelity Ethereum ETF is dubbed the “Fidelity Ethereum Fund” and is billed to track the performance of Ethereum. The firm said the ETF, if approved, will trade in compliance with the BZX Rule.
The filing positions Fidelity Investments at the forefront of the crypto ETF revolution, noting that this move is designed to truly safeguard the interest of investors in the United States.
“To this point, approval of a Spot ETH ETP would represent a major win for the protection of U.S. investors in the crypto asset space,” Fidelity said in its filing.
Fidelity Investments used the Ethereum ETF to expand the general argument proponents of related products have put forth hinting at the fact that the absence of a regulated avenue to embrace crypto predisposes investors in an undue way.
Fidelity Investments is confident in securing approval as it cited an excerpt from the ruling in the Grayscale versus SEC legal brawl. With the SEC denying Grayscale’s request to convert its renowned Bitcoin Trust into a full-fledged Bitcoin Exchange Traded Fund product, the court ruled that the SEC has no basis for the denial as futures tied to BTC had already been approved.
The verdict ordered a review of the SEC decision and recent reports confirmed that the SEC and Grayscale and in consultation about the product.
Fidelity Investments Boosting the ETF Approval Sentiment
Fidelity Investments is a big name when it comes to institutional embrace of crypto. The firm is among the top firms with hopes to gain approval for its spot Bitcoin ETF product filed back in June.
After the filing, the ETF, dubbed the “Wise Origin Bitcoin Trust” has also been updated to address crucial concerns gleaned from feedback from the markets regulator. With Fidelity’s influence in the market, as it boasts about $4.5 trillion in Assets Under Management (AUM) and ample resources, many believe its application will be sanctioned by the SEC.
BlackRock also holds this influence and the presence of both firms has contributed to projections that the approval odds for a spot Bitcoin ETF by January now sitting at 90%
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