Asset management giant Fidelity has filed a 19b-4 to launch a U.S.-regulated spot Ether exchange-traded fund (ETF), the Fidelity Ethereum Fund, which would be listed by an exchange owned by Cboe Global Markets.
The ETF, along with other similar spot crypto ETFs, including a spot Ether ETF filed by BlackRock, will need approval from the U.S. Securities and Exchange Commission (SEC).
Both Fidelity and BlackRock are among the firms that filed to list spot Bitcoin ETFs in the U.S., but the SEC has yet to weigh in on these filings.
Some crypto enthusiasts believe that crypto ETFs, could have a significant impact on the crypto market. Crypto ETFs are more accessible than crypto itself as investors can buy them with a regular brokerage account, just like any other ETFs that follow various other assets, without having to manage their own private keys.
Fidelity’s ETF would use a pricing mechanism similar to the CME Ether futures and rely on price feeds from major spot exchanges. Fidelity suggests this would meet the SEC’s requirement of having surveillance-sharing agreements with a regulated market of significant size.
The filing refers to recent court rulings that state the CME futures market satisfies this criterion for spot bitcoin ETFs and noted that the “only remaining issue to be addressed is whether the ETH Futures market constitutes a market of significant size.“
The fund would directly hold ETH in cold storage and would allow authorized participants to exchange Ether for share creations and redemptions.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://www.cryptocompare.com/email-updates/daily/2023/nov/20/
