Following the SEC approval of several spot Bitcoin ETFs, many companies are also showing interest in ETH ETFs. Fidelity Investments, a Boston-based multinational financial firm, has joined the race for approval to list an Ethereum spot exchange-traded fund (ETF).
While moving forward with its plans, the company filed an S-1 form with the U.S. Securities and Exchange Commission (SEC).
Fidelity files S-1 form for Spot Ethereum ETF
X Post from Radar as Spot Ethereum ETF competition intensifies revealed Fidelity Investments, a $4.5 trillion asset management firm, is said to be the latest applicant for ETH ETF approval.
JUST IN: $4.5 trillion asset management firm Fidelity has filed for a Spot Ethereum ETF that includes staking.
U.S. regulator the SEC has been reluctant to approve Ethereum ETFs and is unlikely to change them unless challenged in court. pic.twitter.com/bdQwCgm1Pf
— Radar🚨 (@RadarHits) March 27, 2024
Recently, Fidelity It has been submitted Its S-1 form with the SEC indicates its intention to issue a Spot Ethereum ETF.
The filing indicates that Fidelity has selected the Chicago Board Options Exchange (CBOE) as the approved market to trade the ETH ETF. However, he did not disclose the ETF's expected fees or the ticker name used for trading.
Notably, Fidelity is not the only company to apply for a spot on the Ethereum ETF. Other prominent companies such as BlackRock, Grayscale, Valkyrie Digital Assets, Franklin Templeton, and WisdomTree Investments are already in the race.
The search for a spot Ethereum ETF began after the SEC approved 11 spot Bitcoin ETFs in January.
Most Bitcoin ETFs posted impressive performance in the weeks following their approval.According to Coinglass dataAs of March 28, BTC ETFs have total assets under management of $57.9 billion.
Fidelity includes ETH staking in Ethereum ETF application
Fidelity Investment has taken that application further by incorporating an ETH staking program. This means that the asset manager is proposing to stake a portion of the trust assets using one or more of his staking infrastructure providers.
Part of the application states:
“As a result of staking activities in which the Trust may engage, the Trust is expected to receive certain staking rewards in Ether, which may be treated as income to the Trust for federal income tax purposes. there is.”
Additionally, the filing indicates that the fund administrator, Fidelity Digital Asset Services, will maintain full control of the staked Ether. You always exclusively own and control the private keys of your staked tokens.
However, the chances of getting a spot Ethereum ETF are relatively low. The SEC is reportedly We have launched an investigation into multiple entities associated with the Ethereum Foundation. Its purpose is focused on classifying ETH as a security.
Additionally, some industry experts believe that the SEC will introduce a delay strategy similar to the approval process for spot BTC ETFs.according to radarthe US SEC has delayed approval of the Ethereum ETF and is likely to remain firm unless challenged.
Bitwise CIO Matt Hogan think The SEC should delay approval from its scheduled May date until December. His discussion revolves around establishing a better understanding of his BTC ETF spot within Wall Street before introducing that of ETH.
