Fidelity Seeks SEC Approval for Spot Ethereum ETF
The United States Securities and Exchange Commission (SEC) has invited the public to provide feedback on a proposed rule change that could potentially allow asset management firm Fidelity to offer shares of its spot Ether exchange-traded fund (ETF).
In a notice released on November 30, the SEC stated that “interested persons” can comment on Fidelity’s offering, which proposes the listing and trading of shares of its Fidelity Ethereum Fund on the Cboe BZX Exchange. Fidelity initially filed for approval of the fund on November 17, joining a growing list of firms vying for a spot crypto ETF in the United States.
The filing acknowledges that investors in countries like Germany, Switzerland, and France have access to Ether through exchange-traded products, while the U.S. “lacks a U.S. regulated, U.S. exchange-traded vehicle.” The public will have 21 days to submit comments once the filing is published in the Federal Register.
“U.S. investors […] are left with fewer and riskier means of gaining exposure to Ether,” the filing states. It further highlights that the absence of a spot ETH exchange-traded product (ETP) exposes U.S. investor assets to significant risk, as they are forced to seek alternative exposure through generally riskier avenues.
The filing emphasizes that the approval of a Spot ETH ETP would be a significant win for the protection of U.S. investors in the crypto asset space.
The SEC has yet to approve any listing of a spot cryptocurrency exchange-traded product or fund for U.S. markets, despite multiple applications from various firms over the years. While exchanges have started listing and trading ETFs tied to Bitcoin futures since October 2021, the SEC has not given the green light to any spot Bitcoin or Ether investment vehicle.
Many reports and experts suggest that the SEC may be nearing a decision on a spot crypto ETF for U.S. markets. If approved, it would mark a major milestone in mainstream crypto adoption. However, as of now, no such approval has been granted.