Public Comment on Fidelity’s Ether ETF
The United States Securities and Exchange Commission (SEC) is calling for public input on a pivotal proposal by Fidelity Investments. The proposal involves a rule change that would enable the Cboe BZX Exchange to list and trade shares of the Fidelity Ethereum Fund, a significant advancement in the cryptocurrency space.
Fidelity’s Application for Spot Ether ETF
Fidelity, a renowned asset management firm, submitted its application for the spot Ether exchange-traded fund (ETF) on November 17. This move positions Fidelity as a frontrunner among firms vying for a spot cryptocurrency ETF in the U.S. market. The application highlights that while countries like Germany, Switzerland, and France offer exchange-traded products (ETPs) for Ether, the U.S. market lacks a regulated, exchange-traded vehicle for cryptocurrency.
21-Day Public Comment Period
The SEC’s notice, dated November 30, opens a 21-day period for public comments following the publication of the filing in the Federal Register. This period is crucial for gathering insights and opinions from various stakeholders about the proposed ETF.
The Importance of a Spot Ether ETP
The filing emphasizes the significance of a spot Ether ETP for U.S. investors. Currently, the absence of such a product forces investors to seek riskier alternatives for Ether exposure. Approval of Fidelity’s Spot ETH ETP could greatly enhance investor protection in the U.S. crypto asset market.
SEC’s Stance on Spot Cryptocurrency ETFs
To date, the SEC has not approved any spot cryptocurrency ETFs in the U.S., although many applications have been filed over the years. However, the market saw the introduction of ETFs tied to Bitcoin futures in October 2021 and Ether futures ETFs in October 2023. With this backdrop, the approval of a spot crypto ETF by the SEC could signal a major leap towards mainstream adoption of cryptocurrencies.
Awaiting SEC’s Decision
While many reports suggest that the SEC may soon decide on a spot crypto ETF for U.S. markets, official approval remains pending. If greenlighted, Fidelity’s spot Ether ETF would represent a significant milestone in integrating cryptocurrencies into the mainstream financial market.