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Fidelity Investments Joins Race to Launch Ethereum Spot ETF in the U.S.

Walter Swift

ByWalter Swift

Nov 18, 2023
Ethereum Merge

Fidelity Investments, a major American investment management firm, has filed an application with the U.S. Securities and Exchange Commission (SEC) to list its Ethereum spot Exchange Traded Fund (ETF), marking a significant move into the cryptocurrency market in the United States.

Fidelity Investments Ethereum ETF Filing

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Fidelity Investments has taken a significant leap in the cryptocurrency market with its latest move to file for an Ethereum spot Exchange Traded Fund (ETF) in the United States. 

As per the Form 19b-4 filed with the Securities and Exchange Commission (SEC), the ETF, named the “Fidelity Ethereum Fund,” aims to closely track the performance of Ethereum. 

The firm has emphasized that, once approved, the ETF will operate in strict accordance with the BZX Rule, ensuring full compliance with regulatory standards.

Fidelity Investments, in its Ethereum ETF filing, has expanded on the broader argument made by proponents of similar financial products, underscoring the necessity of regulated avenues for cryptocurrency engagement. 

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The firm argues that the current lack of regulated options in the crypto space disproportionately exposes investors to risks and unregulated markets.

In a confident stride towards approval, Fidelity Investments referenced a significant moment in the ongoing Grayscale versus SEC legal case. This reference to the court ruling is pivotal, as it highlighted the SEC’s inconsistency in its decision-making process. 

The court had criticized the SEC for rejecting Grayscale’s application to convert its Bitcoin Trust into an Exchange Traded Fund (ETF), especially since futures linked to Bitcoin had already received regulatory approval.

The ruling mandated a reconsideration of the SEC’s decision, casting new light on the regulatory approach towards crypto-based products. Recent developments indicate that the SEC and Grayscale are now in discussions concerning the Bitcoin Trust’s potential transformation into an ETF.

Fidelity’s Influence Strengthens Prospects for Bitcoin ETF Approval

Fidelity Investments, a titan in the realm of institutional cryptocurrency adoption, is making strides in the race to secure approval for its spot Bitcoin ETF product. Filed back in June, the ETF, named the “Wise Origin Bitcoin Trust,” has been rigorously updated in response to feedback from the U.S. Securities and Exchange Commission (SEC).

With Fidelity’s considerable clout in the financial market, underscored by its staggering $4.5 trillion in Assets Under Management (AUM) and substantial resources, there is a growing belief that the SEC will greenlight its application. The firm’s influence is a key factor in this optimistic outlook.

Furthermore, BlackRock, another heavyweight in the financial sector, shares this influential status. The combined presence of Fidelity Investments and BlackRock in the ETF space has significantly uplifted the sentiment around the approval of a spot Bitcoin ETF. 

Current projections, buoyed by the involvement of these industry giants, suggest that the likelihood of a spot Bitcoin ETF receiving regulatory approval by January is now estimated at an impressive 90%.

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Walter Swift

Walter Swift

Walter Swift is an adept crypto writer, known for his deep insights into the decentralized world. His pieces artfully break down complex blockchain topics, making them accessible to a broad audience. With a passion for emerging technologies, Walter's articles are a beacon for crypto enthusiasts and novices alike.

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