Fidelity Files Application for Ethereum Spot ETF

Following in the footsteps of BlackRock, another Wall Street asset management firm, Fidelity, has announced its intention to propose an Ethereum spot ETF.

Early on the morning of November 18, U.S.-based asset management giant Fidelity Investments submitted documentation to the SEC to register an Ethereum spot ETF.

Fidelity's move comes just days after Wall Street heavyweight BlackRock made a similar move.

Fidelity's Ethereum spot ETF will be listed on an exchange owned by Cboe, although the custodian for the assets has not been disclosed.

In its application, Fidelity argues that an Ethereum spot ETF would provide investors with added protection when participating in the cryptocurrency market, rather than directly holding ETFs and facing associated risks. The company also referenced Grayscale's legal victory before the SEC in August, noting that the U.S. Securities and Exchange Commission has yet to provide compelling reasons for rejecting crypto spot ETFs.

According to Bloomberg's statistics, this marks the seventh proposal for an Ethereum spot ETF submitted to the SEC recently, following proposals from VanEck, ARK Invest, Hashdex, Grayscale, Invesco, and BlackRock.

All these proposals, however, are contingent on SEC approval for the Bitcoin spot ETFs currently under review. The SEC has consistently delayed making decisions, citing the prevalence of market manipulation and fraud in the cryptocurrency market as reasons for caution.

Similar to BlackRock, Fidelity had earlier in mid-2023 announced its proposal to launch a Bitcoin spot ETF, which has also faced multiple delays from the SEC.

The price of ETH showed minimal reaction to the news of Fidelity's application for an Ethereum spot ETF with the USDT pairing on Binance at 07:50 AM on November 18, 2023.