BasEx | Fidelity's Spot Ethereum ETF Launch
Fidelity Files Application to Launch Spot Ethereum-ETF
19.11.2023
Fidelity Files Application to Launch Spot Ethereum-ETF

Financial giant Fidelity Investments has approached the U.S. Securities and Exchange Commission (SEC) with a proposal to create an Exchange-Traded Fund (ETF) focused on the current price of Ethereum.

This move follows the actions of their competitor BlackRock.

Fidelity plans to trade shares of its Ethereum Fund on the Cboe BZX exchange, with its division Fidelity Digital Assets Services acting as the custodian of the fund's assets.

Fidelity expressed confidence that the approval of such a product would significantly improve the protection of American investors in the cryptocurrency sector.

They also emphasized that in the absence of a spot ETF, investors are forced to seek riskier investment options, facing legal uncertainty and high commissions.

Fidelity pointed out that in Europe, including Germany, Switzerland, and France, there is already access to similar spot products based on Ethereum.

The company also stated that having an Ethereum-ETF could reduce losses of American investors from the collapse of major crypto projects, such as FTX, Celsius Network, and BlockFi.

Bloomberg exchange analyst James Seyffart noted that this is already the seventh application by the company for the creation of a fund based on Ethereum.

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