Saturday, July 20, 2024
Financial services giant Fidelity is seeking to offer US investors a spot market Ethereum (ETH) exchange-traded fund (ETF) according to a new filing with the U.S. Securities and Exchange Commission (SEC). The $4.5 trillion asset manager is looking to list and trade shares of the Fidelity Ethereum Fund. The filing states that each Share will represent a fractional undivided beneficial interest in the Trust’s net assets, which will consist of ETH held by the Custodian. The Trust generally does not intend to hold cash or cash equivalents.
The filing argues that the absence of a regulated exchange-traded vehicle for gaining exposure to ETH exposes investors to counterparty risks, legal uncertainty, complexities, and other disadvantages. Approval of a Spot ETH ETP (exchange-traded product) would be a major win for the protection of U.S. investors in the crypto asset space. Other companies seeking regulatory approval for a spot market Ethereum ETF include BlackRock and Hashdex.

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