Fidelity Submits an Ether ETF Application with the SEC: Details
- American asset management firm Fidelity has filed an application with the SEC for an Ether spot ETF.
- This application comes a few days after BlackRock filed its request for the approval of an Ether ETF.
- The SEC recently delayed its decision on whether to approve the Hashdex Nasdaq Ethereum ETF.
- There are a total of seven firms that have filed an application for an Ether spot ETF with the SEC, including Grayscale.
Fidelity, an asset management firm based in the United States, has filed for an Ethereum spot exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC). Interestingly, BlackRock, the biggest asset management company in the world, also submitted a similar application to the regulator a few days ago. It is currently unclear if the regulator will approve the applications.
Fidelity, a well-known provider of ETFs in the United States and an asset manager with $4.5 trillion in assets under management, filed for an Ethereum ETF on November 17. In the filing, the asset management firm outlined its plans to list and trade shares of the Fidelity Ethereum Fund on the Cboe BZX Exchange.
Further, as per the registration statement, each share of the Fidelity Ethereum ETF “will represent a fractional undivided beneficial interest in the Trust’s net assets, which will consist of ETH held by the Custodian on behalf of the Trust.” Interestingly, a total of seven asset management firms have now filed for approval of an Ether ETF, including BlackRock, Hashdex, Grayscale, and VanEck.
Interestingly, BlackRock filed for an Ether spot ETF earlier this week, known as the iShares Ethereum Trust. The ETF will “reflect generally the performance of the price of Ether” and the asset management firm named the largest crypto exchange Coinbase as the custodian for its crypto holdings.
It is important to mention here that the SEC delayed making a decision earlier this week on whether to approve the Hashdex Nasdaq Ethereum ETF, an investment vehicle that seeks to hold both spot and futures contracts. The regulator said it would make a decision on whether to approve, disapprove, or “institute proceedings to determine whether to disapprove” by January 1, 2024.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” said the SEC.
As reported earlier by Bitnation, Fidelity expanded its digital asset arm, Fidelity Digital Asset Management, throughout the bear market of 2022. The firm hired 100 new employees over a span of six months, while other crypto-focused firms announced layoffs.