After the SEC approved some spot Bitcoin ETFs, many entities also expressed interest in ETH ETFs. Boston-based multinational financial firm Fidelity Investments has joined the race to get an Ethereum spot exchange-traded fund (ETF) approved.
As it moves forward with its plans, the company has filed a Form S-1 with the U.S. Securities and Exchange Commission (SEC).
Fidelity files Ethereum ETF spot S-1 form
As competition heats up for spot Ethereum ETFs, X post from Radar disclose Fidelity Investments, a $4.5 trillion asset manager, is the latest applicant to be approved for an ETH ETF.
Just reported: $4.5 trillion asset manager Fidelity has applied for a spot Ethereum ETF that includes staking.
U.S. regulator the SEC has been reluctant to approve an Ethereum ETF and is unlikely to make changes unless challenged in court. pic.twitter.com/bdQwCgm1Pf
— Radar 🚨 (@RadarHits) March 27, 2024
Recently, Fidelity submit Submit Form S-1 to the SEC indicating its intention to issue a spot Ethereum ETF.
The document shows that, upon approval, Fidelity selected the Chicago Board Options Exchange (CBOE) as the trading market for the ETH ETF. However, it did not specify the ETF’s expected fees or the names of the stocks it would trade.
It’s worth noting that Fidelity isn’t the only company applying for shares in an Ethereum ETF. Other well-known entities such as BlackRock, Grayscale, Valkyrie Digital Assets, Franklin Templeton and WisdomTree Investments have also joined the fray.
Since the SEC approved 11 spot Bitcoin ETFs in January, people have begun to seek Ethereum ETF spot.
Most Bitcoin ETFs have seen impressive performance in the weeks following their approval.According to Coingras dataAs of March 28, the total assets under management of BTC ETFs have reached $57.9 billion.
Fidelity includes ETH staking in its Ethereum ETF application
Fidelity Investment has taken its adoption a step further by incorporating an ETH staking program. This means that asset managers recommend using one or more staking infrastructure providers to pledge a portion of their trust assets.
Part of the application reads:
“As a result of any staking activity in which the Trust may engage, the Trust expects to receive certain Ether staking rewards, which may be treated as trust income for federal income tax purposes.“
Additionally, the document shows that the fund’s custodian, Fidelity Digital Asset Services, will maintain full control over the pledged ether. It will always have exclusive possession and control of the private keys of the staked tokens.
However, the likelihood of obtaining a spot Ethereum ETF is relatively low.The U.S. Securities and Exchange Commission has It is said An investigation has been launched into several entities with ties to the Ethereum Foundation. The goal is to classify ETH as a security.
Additionally, some industry experts believe that the SEC will implement a delay strategy similar to the spot BTC ETF approval process.according to radarthe U.S. SEC has delayed approval of an Ethereum ETF and is likely to remain firm unless challenged.
Matt Hougan, Chief Information Officer, Bitwise think The SEC should push back the approval date from the expected May to December. His argument revolves around better understanding Wall Street’s spot BTC ETF before introducing ETH.
