By Michael Scott
Asset management firm Fidelity Investments applied for spot Ethereum exchange-traded fund (ETF) days after BlackRock confirmed filing for the iShares Ethereum Trust. Fidelity became the latest asset management firm to seek approval from the Securities and Exchange Commission (SEC) for the Spot Ether ETF.
Johnson-Led Fidelity Investments Applies for Spot Ethereum ETF
Under the leadership of Abigail Pierrepont Johnson, Fidelity Investments assets under management (AUM) has grown to $4.5 trillion. The firm confirmed its applications to the Gary Gensler-chaired SEC on Friday, November 17. A detailed review of the filing indicates that Fidelity identifies the Cboe BZX Exchange as the platform to list and trade the Fidelity Ethereum Fund shares.
The registration statement captured in the Fidelity application indicated that each share is representative of a fraction of the undivided benefit interest one holds in the net assets owned by the Trust. The filing detailed that the Trust’s assets are restricted to ETH held on behalf of the Trust by the custodian.
Fidelity declared in its filing that United States residents have previously suffered the inaccessibility to the low-risk avenue, exposing them indirectly to Ethereum. In particular, Fidelity’s statement decried the absence of a regulated exchange-traded vehicle that retail investors can tap to gain exposure to Ethereum.
Fidelity Investments Laments Absence of ETF in the United States
Fidelity regretted that the current methods utilized by retail investors to access digital assets subject them to multiple risks, including legal uncertainty, technical and counterparty concerns. Unlike the US, Fidelity observed that European investors readily access products trading on regulated exchanges and offer exposure to a diversified range of spot crypto assets.
Fidelity delved into the August revelation when the European investors realized the inaugural spot Bitcoin ETF when Jacobi Bitcoin ETF secured approval for listing on the Euronext Amsterdam stock exchange. The asset management firm regretted in its filing the unavailability of Ether ETF to the US residents. It would have saved the digital wealth trapped and probably lost in the now-defunct companies, including FTX, BlockFi, and Celsius Network.
Fidelity indicated that the availability of spot ETH ETF would have at least saved the US investors a portion of the billions locked in the ongoing proceedings, such would still reside within the brokerage accounts.
Fidelity Joins Fellow Bitcoin ETF Applicants Pursuing Ether ETF
Fidelity filing comes days after BlackRock officially submitted its spot Ether ETF dubbed iShares Ethereum Trust with the Gensler-led Commission on Thursday, November 16.
The previous week, BlackRock registered the iShares Ethereum Trust with the Corporations Division in Delaware. The application by Larry Fink’s firm comes six months after the spot Bitcoin ETF application in June 2023.
Besides BlackRock, Fidelity joins other notable applicants pursuing Ether ETF, including Invesco Galaxy, Grayscale, Hashdex, Ark Invest, 21Shares, and VanEck.