Fidelity, a major player in asset management with over $4.5 trillion in assets, has officially submitted an application for a Spot Ethereum Exchange-Traded Fund (ETF). This strategic decision came on the heels of BlackRock’s similar application for an Ethereum ETF last week.
The filing highlights Fidelity’s commitment to safeguarding U.S. investors in the crypto space, emphasizing that approval for a Spot ETH ETF would mitigate risks faced by investors seeking exposure through alternative and riskier avenues.
Referencing the recent Grayscale court ruling, the filing underscores the court’s criticism of the SEC’s lack of a coherent reason for rejecting spot crypto ETFs while allowing futures-based products. This legal backdrop lends weight to Fidelity’s application.
Bloomberg ETF analyst James Seyffart highlighted that, to the best of my knowledge, they are the seventh entity to file for a spot at Ethereum. The initial six filings are as follows:
Moreover, it’s worth mentioning that Hashdex’s Ethereum filing was indeed delayed by the SEC this week, in case anyone was curious.
Fidelity’s Confidence in Ethereum ETF
Notably, Fidelity had entered the ETF race back in June with a filing for a spot bitcoin ETF, coinciding with BlackRock’s entry into the same arena. The company remains optimistic about regulatory approval, drawing confidence from ongoing discussions between the SEC and Grayscale over their proposed product.
The court’s rebuke of the SEC in the Grayscale case, asserting a lack of reasonable justification for denying the conversion of the Bitcoin Trust into a full-fledged ETF, has prompted a review of the SEC’s ruling. Current information suggests that the SEC and Grayscale are still discussing the suggested product.
Fidelity’s admiration for Ethereum is evident, as highlighted by Chris Kuiper, the Director of Research at the firm, in a recent discussion. Kuiper explored the rising significance of digital assets and projected their potential for further expansion.
This optimism is seamlessly woven into Fidelity’s application for a Spot Ethereum ETF, where the company envisions Ethereum’s role in facilitating large-scale transactions in the future.
Related Reading | WisdomTree’s Spot Bitcoin ETF Gains Traction with Revised Filing