Fidelity Investments became the latest company to submit a spot Ethereum ETF proposal and has the objective of listing the Ethereum ETF on an exchange that is owned by Cboe Global Markets.
The result of this could be a surge in the appeal and value of the Ether (ETH) crypto. The news originally came from a report by James Seyffart, a top ETF analyst, who posted a screenshot of the filing.
Summary
- Fidelity Investments became the latest company to submit an Ethereum ETF proposal
- Ethereum jumped 13% when BlackRock filed a similar proposal
- Other companies that filed include Invesco and Galaxy, Grayscale, 21Shares and ARK, VanEck, and Hashdex.
Fidelity Investments Submits Ethereum ETF Proposal
Fidelity Investments conducts operations as a brokerage firm and manages a large family of mutual funds. They also provide fund distribution and investment advice alongside retirement services and index funds. They currently have $4.5 trillion in assets under management, making them one of the largest companies.
Recently, they made a filing for an Ethereum exchange-traded fund (ETF). Based on their submitted proposal, they intend to list the Ethereum ETF on an exchange that is owned by Cboe Global Markets.
Like the proposals before it, Fidelity’s spot Ethereum ETF needs to first be approved by the Security and Exchange Commission (SEC). Fidelity and other money-management giants are also waiting for the SEC to approve Bitcoin ETFs as well.
James Seyffart Sheds Light on the Future of Fidelity Investments
James Seyffart, a major ETF analyst, posted a screenshot of the filing on X, formerly known as Twitter, on November 17, 2023. According to the report, “The Exchange proposes to list and trade shares of the Fidelity Ethereum Fund under BZX Rule 14.11(e)(4) Commodity-Based Trust Shares.”
Seyffart noted how Fidelity has now become the latest large company to submit a spot Ethereum ETF proposal by this filing. Other companies that have similar proposals include BlackRock, Invesco and Galaxy, Grayscale, 21Shares and ARK, VanEck, and Hashdex.
Enthusiasts Are Optimistic About the Future Outcome
Crypto enthusiasts believe that the spot ETFs for both Ethereum and Bitcoin, the two largest cryptocurrencies by market, can genuinely shake up the current market.
There is a belief currently that this would open the market much further and would make it much simpler for mainstream investors to participate in these types of investments, ultimately driving the demand and value of these cryptocurrencies further.
With these spot ETFs, conventional brokerage accounts can also let any user buy listed ETFs and then begin trading them like stocks. In theory, this could attract a wide range of new investments within the digital asset industry. This can be specifically the case if there’s the involvement of Fidelity and BlackRock, which are some of the largest in the industry.
When BlackRock announced its filing for an Ethereum ETF, Ethereum’s value jumped 13%. In the past month, ETH’s value has seen a total upswing of 25%, indicating that there is genuine interest in such an offering.
