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. The filing stated:
“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.”
Update: @Fidelity joins the spot #ethereum ETF race by filing a 19b-4 with @CBOE https://t.co/rxNEzpzh3g pic.twitter.com/o96XspPDEP
— James Seyffart (@JSeyff) November 17, 2023
The filing declared 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 range of spot crypto assets.
Related: BlackRock argues SEC has no grounds to treat crypto futures and spot ETFs differently
On August 15, Cointelegraph reported that the first European spot Bitcoin ETF, the Jacobi Bi
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Author: Ciaran Lyons
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