The Ethereum Spot ETF race is heating up, and Fidelity Investments is charging into the competition with unbridled enthusiasm, showcasing its commitment to the burgeoning crypto market.
In a bold move, the American multinational financial service giant, Fidelity Investments, has officially thrown its hat into the Ethereum ETF ring. The company, no stranger to groundbreaking financial ventures, has filed for an Ethereum Spot Exchange Traded Fund (ETF) with the United States Securities and Exchange Commission (SEC).
This marks Fidelity’s second foray into the ETF arena, following its earlier filing for a Spot Bitcoin ETF, which is eagerly awaiting the SEC’s green light. Undeterred by the pending approval, Fidelity is doubling down on its crypto investment strategy with the recent Ethereum ETF filing.
The comprehensive submission to the SEC on Friday outlines Fidelity Investment’s vision for the Ethereum ETF, shedding light on the intricacies of listing and trading Trust shares on the exchange. Notably, the filing emphasizes that the Trust, backed by Fidelity Investment, stands apart from conventional investment company laws, distancing itself from classification as a commodity pool under Commodities laws.
Fidelity’s strategic move for regulatory clarity aligns with the broader legal landscape, as the SEC navigates its relationship with various crypto exchanges and financial institutions in the industry. The filing confidently asserts the intention to list and trade the Fidelity Ethereum Fund shares under BZX Rule 14.11(e)(4), governing Commodity-Based Trust Shares on the exchange.
Crucially, the filing clarifies the unique status of the Trust: “The Trust is neither an investment company registered under the Investment Company Act of 1940, as amended, nor a commodity pool for purposes of the Commodity Exchange Act (“CEA”). Neither the Trust nor the Sponsor is subject to regulation as a commodity pool operator or a commodity trading adviser in connection with the Shares.”
In a display of innovation, Fidelity Investments, akin to BlackRock’s recent Ethereum Spot ETF filing, has intricately outlined the structure and diverse use cases of its proposed Ethereum ETF. This bullish move positions Fidelity at the forefront of the Ethereum ETF race, signaling a strong belief in the future of cryptocurrency investments.