Fidelity joins Ethereum ETF race following BlackRock’s filing
- The proposed ETF aims to list and trade its shares on the Cboe BZX Exchange.
- Fidelity joins VanEck, 21Shares & ARK, Hashdex, Grayscale, and Invesco & Galaxy in the Ether ETF race.
In a swift follow-up to BlackRock’s recent move, Fidelity has officially thrown its hat into the ring, seeking approval for its Ethereum [ETH] exchange-traded fund [ETF].
The filing, submitted to the United States Securities and Exchange Commission (SEC) on 17th November, marks Fidelity’s entry into crypto-backed ETFs.
The proposed ETF, named the Fidelity Ethereum Fund, aims to list and trade its shares on the Cboe BZX Exchange.
Fidelity boasts a colossal $4.5 trillion in assets. Citing a gap in the market, Fidelity asserts that U.S. retail investors have been deprived of a low-risk avenue to expose themselves to Ethereum.
The filing highlights the challenges faced by investors, including counter-party risk, legal uncertainty, and technical risk, when attempting to access the digital asset through existing methods.
Interestingly, the filing draws attention to the disparity between U.S. and European investors. While European investors enjoy access to products trading on regulated exchanges, offering exposure to a broad range of spot crypto assets, their U.S. counterparts face limitations.
Fidelity argues that the absence of a U.S.-regulated, exchange-traded vehicle for ETH exposure has left retail investors with limited options.
Compelling case made for the benefits of an Ether ETF
The filing resonates with recent developments in Europe, where the Jacobi Bitcoin ETF became the first European spot Bitcoin ETF approved for listing on the Euronext Amsterdam stock exchange on 15th August.
Fidelity’s move suggests a strategic response to the evolving global landscape, emphasizing the need to bridge the gap for U.S. investors.
Furthermore, Fidelity makes a compelling case for the potential benefits of an Ether ETF in mitigating losses for U.S. investors. The filing suggests that had Spot ETH ETF been available earlier, losses incurred from now-defunct firms like FTX, Celsius Network, and BlockFi would have been considerably lower.
This move by Fidelity comes hot on the heels of BlackRock’s filing for the iShares Ethereum Trust, officially submitted to the SEC on 16th November.
Fidelity joins an illustrious list of firms seeking approval for an Ether ETF, including VanEck, 21Shares & ARK, Hashdex, Grayscale, and Invesco & Galaxy.