Fidelity Investments Pursues Ethereum ETF, Joins BlackRock in Regulatory Quest

(Image credits: Forbes)

In a strategic move to tap into the soaring popularity of cryptocurrencies, financial services titan Fidelity Investments has officially thrown its hat into the ring, seeking regulatory green light for an exchange-traded fund (ETF) centered around Ethereum. This announcement follows hot on the heels of a similar filing made by investment giant BlackRock just a day prior.

The proposed ETF, dubbed the Fidelity Ethereum Fund, aims to directly mirror the performance of Ethereum, the foundational token underpinning the revolutionary Ethereum blockchain network. If approved, these ETF shares are poised to trade on the Cboe BZX Exchange and will be identified by the ticker symbol ETHF.

Fidelity outlined the primary objective of the ETF: to closely track the price movements of Ether. This will be achieved by monitoring the Fidelity Ethereum Index, which mirrors Ether’s U.S. dollar valuation derived from significant trading activities across leading Ether trading platforms.

Analysts in the ETF arena have noted the burgeoning interest in Ethereum-based investment products. Jaymes Seyffart, an ETF research analyst, pointed out Fidelity’s entry into the fray, making them the seventh entity to file for a spot Ethereum ETF. Previous filings have been made by industry stalwarts like BlackRock, Grayscale, 21Shares/ARK, VanEck, and Hashdex.

Notably, BlackRock’s involvement stands out given its immense asset management expertise, steering a colossal $9.4 trillion in assets. Meanwhile, Hashdex, joining the race in August, further signaled the growing traction of Ethereum-focused investment instruments.

The timing of Fidelity’s filing aligns with mounting pressure on the Securities and Exchange Commission (SEC) to greenlight a spot bitcoin ETF, following their approval of futures-based bitcoin ETFs last year. Advocates in the cryptocurrency sphere argue that a spot ETF would serve as a safer and more accessible avenue for traditional investors to engage with digital assets.

As the regulatory landscape for cryptocurrency ETFs continues to evolve, the industry eagerly awaits the SEC’s decision, which could significantly reshape the accessibility and acceptance of cryptocurrencies among mainstream investors.

Source: Decrypt

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