Crypto Acceptance Grows As Fidelity Joins Race For A Spot Ethereum ETF
November 18 2023 - 2:24AM
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Fidelity, a prominent asset management firm with over $4.5 trillion
in assets under management, has formally submitted an application
for the establishment of a Spot Ethereum Exchange-Traded Fund
(ETF). The decision is a response to the recent action taken by
BlackRock, an asset management company, which submitted their
application for an Ethereum Exchange-Traded Fund (ETF) last week.
Fidelity Is 7th On The List Fidelity Investments has recently
positioned itself as the seventh asset management in the United
States to pursue the aforementioned product. Based on the SEC’s
Form 19b-4 filing, the Fidelity Ethereum ETF is called the
“Fidelity Ethereum Fund” and is designed to track the performance
of Ethereum. If approved, the ETF will trade in accordance with the
BZX Rule, the company disclosed. Update: @Fidelity joins the spot
#ethereum ETF race by filing a 19b-4 with @CBOE
https://t.co/rxNEzpzh3g pic.twitter.com/o96XspPDEP — James Seyffart
(@JSeyff) November 17, 2023 Related Reading: Options Frenzy:
Bitcoin Rally To $37,000 Sparks Explosive Open Interest Surge Each
share shall reflect a portion of the undivided beneficial interest
in the net assets of the Fidelity ETH Fund, the Registration
Statement shows. ETH held by the New York Department of Financial
Services on behalf of the Fidelity Ethereum Fund will make up the
Trust’s assets. The Importance Of Spot ETFs Spot ETFs play a
pivotal role in significantly expanding the reach of
cryptocurrencies to the average investor, aligning with the
increasingly emphasized goal of asset managers such as BlackRock,
Grayscale, and other industry players. Despite the concerted
efforts of regulatory bodies like the SEC to counteract this trend,
the push for democratizing access to crypto investments has
remained steadfast. ETH market cap currently at $232 billion on the
weekly chart: TradingView.com At the forefront of the crypto
market, Bitcoin and Ethereum stand as two of the most prominent
digital assets, commanding substantial trade volumes and market
values. Drawing a parallel with Bitcoin, Ethereum stands poised for
a potentially significant surge in value within the next 24 hours,
driven by the announcement of Fidelity’s application, marking a
development that could significantly impact the cryptocurrency
landscape. ETH Up 6.2% In The Weekly Chart At the time of writing,
ETH was trading at $$1,930, up 2.3% in the last 24 hours, and
sustaining a decent 6.2% increase in the last seven days, data from
Coingecko shows. Meanwhile, citing a section of the court ruling in
the legal battle between Grayscale and the SEC, Fidelity
Investments is optimistic that it will receive permission.
Update: @Fidelity joins the spot #ethereum ETF race by filing a
19b-4 with @CBOE https://t.co/rxNEzpzh3g pic.twitter.com/o96XspPDEP
— James Seyffart (@JSeyff) November 17, 2023 The court argued that
the SEC lacked a reasonable justification for denying Grayscale’s
request to convert its well-known Bitcoin Trust into a full-fledged
Bitcoin Exchange Traded Fund (ETF), particularly in light of the
prior approval of BTC-linked futures. Related Reading: Litecoin
Sustains 4-Month Run With 37% Gain, Beating Most Of Its Peers –
Details As a result, the court ordered a review of the SEC’s
ruling, and current information suggests that the SEC and Grayscale
are still in talks over the suggested product. Emerging Prominence
Of Crypto Assets Fidelity has expressed its admiration for Ethereum
in a vocal manner. In a recent discussion, Chris Kuiper, the
Director of Research at the firm, examined the emerging prominence
of digital assets and projected their potential for further
expansion in the foreseeable future. The company’s hope that ETH
would be used for large-scale transactions in the future is further
expressed in Fidelity’s Spot Ethereum ETF application. (This site’s
content should not be construed as investment advice. Investing
involves risk. When you invest, your capital is subject to risk).
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