Fidelity Investments, a prominent player in the asset management industry with $4.5 trillion in assets under its supervision, has recently made a bold move. The company has filed an application for a Spot Ethereum Exchange-Traded Fund (ETF) with the US Securities and Exchange Commission (SEC) using an S-1 form. In their filing on Wednesday, Fidelity hinted at their intention to incorporate staking capabilities into their Fidelity Ethereum Fund.
This development comes in the wake of the SEC’s groundbreaking approval of the first Spot Bitcoin ETF in the United States earlier this year. The approval of digital asset investment products gained significant attention, and Fidelity was among the first eleven issuers to receive approval for a Spot Bitcoin ETF. The approval was a crucial milestone in the cryptocurrency’s development, especially as its value reached new heights in March 2024.
Following the success of Spot Bitcoin ETFs, there is considerable curiosity about which cryptocurrency will be next in line for similar treatment. Ethereum, currently the second most valuable cryptocurrency in terms of market value, has emerged as a strong contender. In its recent filing, Fidelity expressed a strong desire to expand its digital asset offerings, including a Spot Ethereum ETF.
However, the SEC’s ongoing evaluation of Ethereum’s security classification has led to speculation and skepticism regarding the possibility of an Ethereum Spot ETF. Despite these hurdles, industry insiders like Craig Salm, GrayScale’s chief legal officer, remain optimistic about potential future approvals. Salm referenced the prior approval of the Spot Bitcoin ETF, suggesting that the process for Ethereum ETF proposals may be less complicated.
In other cryptocurrency news today, Shiba Inu is showing signs of an impending significant rally, reminiscent of its breakthrough in 2021.
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