The race for an Ethereum spot ETF is in full swing. Now Fidelity, the third largest asset manager in the world, is entering the sector and filing one corresponding request with the Securities and Exchange Commission (SEC). If everything goes smoothly, the financial product will be launched on the CBOE in Chicago.
With the application, Fidelity wants to offer US investors a lower-risk way to invest in Ethereum. As the letter states: “US retail investors lack a regulated exchange-traded vehicle to gain exposure to ETH.” Previous investment opportunities are burdened by counterparty risk and legal and technical uncertainties. The bankruptcies of FTX, Celsius and BlockFi, for example, have shown this, according to Fidelity. “If there had been a spot ETF for Ethereum, at least some of the billions of US dollars tied up in these procedures would have been available in brokerage accounts of US investors,” the asset manager further argues.
The registration for an Ethereum ETF comes just days after a push from BlackRock. The world’s largest asset manager filed its own filing with the SEC late last week. There are a total of seven applications to the US securities regulator from companies such as: Van Eck, 21Shares, Ark Invest and Grayscale. Final approval is still pending.
However, hopes from the crypto space are high. Not only do they firmly believe in approval. Market observers are also speculating about possible staking rewards that providers could pass on to investors in the form of a dividend. However, there is no concrete information yet.
The big wait for a Bitcoin ETF
Meanwhile, the crypto space continues to look forward to the approval of a Bitcoin Spot ETF. In recent weeks there have been increasing indications that a possible financial product could soon make its debut in the USA. There are also several well-known aspirants here. BlackRock is once again in pole position here.
Here too, a final decision still has to be made. Market experts assume that the SEC will probably not give the green light until spring 2024, but then with approvals for several providers.
The crypto market has been on the rise for weeks. Investors are euphoric about the fact that with a spot ETF, the underlying asset has to be accumulated by the provider in order to “physically” deposit it as security.
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