Fidelity Investments, a well-established financial management firm, has officially submitted an application for an Ethereum exchange-traded fund (ETF). The disclosure was made public when James Seyffart, a prominent ETF analyst, shared a screenshot of the filing through his X app account. The filing outlines Fidelity’s proposal to list and trade shares of the Fidelity Ethereum Fund under BZX Rule 14.11(e)(4) Commodity-Based Trust Shares.
This move positions Fidelity as the seventh company to present a spot Ethereum ETF proposal, joining the ranks of other entities such as VanEck, 21Shares, Ark, Hashdex, Grayscale, Invesco, Galaxy, and BlackRock.
As outlined in the submitted proposal, Fidelity aims to list the Ethereum ETF on an exchange operated by Cboe Global Markets. However, like its counterparts, Fidelity’s proposal awaits approval from the U.S. Securities and Exchange Commission (SEC). Notably, Fidelity, along with other major financial institutions, is also eagerly anticipating the SEC’s decision on spot Bitcoin ETF approvals.
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Crypto enthusiasts and optimists anticipate that the introduction of spot ETFs for Bitcoin and Ethereum, the two leading cryptocurrencies, could significantly impact the crypto market. There is a widespread belief that such ETFs would enhance market accessibility, facilitating mainstream investors’ entry into the innovative crypto space.
With spot ETFs, traditional brokerage accounts could seamlessly purchase and trade listed ETFs like regular stocks. The theoretical outcome is an increased flow of investments into the digital asset industry, especially with the involvement of financial giants like Fidelity and BlackRock.
The news of BlackRock’s Ethereum ETF filing on November 9 triggered a nearly 13% surge in Ethereum’s value. The cryptocurrency reached a local high of $2,136 before undergoing a retracement and consolidating at around $1,934 at the time of writing, as indicated by data from TradingView.