Fidelity Initiates Application for a Physical Ethereum ETF

Explore Fidelity's latest move in the cryptocurrency world with its application for a physical Ethereum ETF.

Following BlackRock's lead, this step indicates a growing trend among traditional investment firms seeking exposure to virtual currencies.

Delve into the implications and expectations from the SEC in this insightful article.

Fidelity Joins the Trend: Applying for an Ethereum ETF Following BlackRock

Fidelity, a major U.S. asset manager, has begun applying for a physical Ethereum ETF, following a move by BlackRock last week.

Cboe Global Markets, in partnership with Fidelity, has submitted Form 19b-4 for the "Fidelity Ethereum Fund" to the SEC.

Form 19b-4 is a document submitted by the exchange handling the listed product, while the issuing company of the ETF securities must submit a separate Form, known as "S-1".

Fidelity has stated that the approval of a physical ETH ETP (with ETF being a type of ETP) would be a significant victory for the protection of U.S. investors in the cryptocurrency sector.

They pointed out, “Traditional investors are seeking exposure to virtual currencies, and in the absence of such institutional investor-oriented products, they might shift to riskier alternatives, facing greater risks.”

The Growing Expectation for SEC Approval of Institutional Cryptocurrency Products

The anticipation for SEC approval of institutional investor-oriented products such as a physical Bitcoin ETF or a physical Ethereum ETF is growing. These products are deemed the most appropriate for attracting institutional money.

In addition to Fidelity, BlackRock submitted Form S-1 for the physical Ethereum ETF “iShares Ethereum Trust” to the SEC on the 15th of this week.

Furthermore, Grayscale, which is also applying for a Bitcoin ETF, confirmed this week that it has submitted an application to convert its Ethereum investment trust into a physical Ethereum ETF.

Meanwhile, this week, the SEC decided to postpone its decision on several cryptocurrency ETF applications.

These include the conversion of Hashdex’s Bitcoin futures ETF to a physical ETF, Grayscale's application for an Ethereum futures ETF, Hashdex’s application for an Ethereum ETF, and applications for physical Bitcoin ETFs by Global X and Franklin Templeton.