Fidelity Joins BlackRock in the Race for Spot Ethereum ETF

Amidst a surge in ETF applications, Fidelity Ventures into Ethereum territory, echoing BlackRock’s recent foray into the cryptocurrency market.

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  • Fidelity and BlackRock have spearheaded a groundbreaking move in the cryptocurrency sphere.
  • The SEC’s evolving stance on spot ETFs has sparked intrigue and anticipation.
  • The potential approval of a spot Ethereum ETF stands as a milestone.

In a significant development for the cryptocurrency industry, Fidelity Investments has filed for a spot Ethereum exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). This move comes just two days after BlackRock, the world’s largest asset manager, submitted its own spot Ethereum ETF application.

Fidelity Sets Eyes on Spot Ethereum ETF

The filing, which was made on November 17, proposes a new rule change that would allow Cboe BZX to list and trade shares of Fidelity’s planned fund. The proposal closely resembles Fidelity’s spot Bitcoin ETF proposal, which was submitted to the SEC in late June.

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Fidelity and BlackRock are not alone in their pursuit of spot Ethereum ETFs. Several other asset managers have also filed applications with the SEC, including Invesco, VanEck, and WisdomTree.

The SEC is expected to make a decision on ARK Invest’s spot Bitcoin ETF application by January 10, 2024. This decision is likely to set a precedent for other pending ETF applications, including those for spot Ethereum ETFs.

The approval of a spot Ethereum ETF would be a major development for the cryptocurrency industry, as it would provide investors with a more convenient and regulated way to gain exposure to the world’s second-largest cryptocurrency.

What is the SEC’s stance on spot ETFs?

The SEC has been hesitant to approve spot ETFs in the past, citing concerns about market manipulation and investor protection. However, the agency has recently signaled that it may be more open to approving spot ETFs in the future.

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The approval of a spot Ethereum ETF would be a major milestone for the cryptocurrency industry. It would likely pave the way for the approval of other spot ETFs, including those for Bitcoin and other cryptocurrencies.

On the Flipside

  • The SEC’s hesitancy towards spot ETF approval stems from legitimate concerns over potential market manipulation and ensuring investor protection.
  • The decision on ARK Invest’s spot Bitcoin ETF application could set a standard not only for Ethereum but for all future cryptocurrency-based ETFs.

Why This Matters

The pursuit of a spot Ethereum ETF marks a crucial juncture, fostering a regulated gateway for investors to gain exposure to Ethereum, the second-largest cryptocurrency globally. If approved, this milestone not only streamlines accessibility but also sets a precedent for future ETFs, amplifying the acceptance and potential growth of cryptocurrencies within traditional financial frameworks.

To delve deeper into the broader traditional finance interest unveiled by BlackRock’s ETH ETF filing, read here:
Blackrock’s ETH ETF Filing Reveals Broader Tradfi Interest

To understand the market’s anticipation amid the SEC’s postponed verdict on spot ETFs, read here:
SEC Postpones Spot ETFs Verdict, Keeps Market On Edge

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.