The cryptocurrency market has been experiencing a major surge in interest surrounding Ethereum Spot ETFs and Fidelity Investments has joined the race with its newest filing.
American multinational financial service corporation, Fidelity Investments has decided to get actively involved in the ongoing Ethereum ETF mania. The mutual funds company has officially filed for an Ethereum Spot Exchange Traded Funds (ETF) to the United States Securities and Exchange Commission (SEC).
The new Ethereum ETF filing is the second ETF the investment company has submitted to the US SEC. Previously, Fidelity Investment filed for a Spot Bitcoin ETF which is presently still awaiting approval by the SEC.
Fidelity Investment’s Ethereum ETF filing which was submitted on Friday relayed several distinct details to the US SEC. The financial service company outlined the framework of the listing and trading of Trust shares on the exchange.
According to the filing, the Trust backed by Fidelity Investment distinguishes itself from being recognized as an investment company under the investment company laws. Additionally, the filing clarifies that the Trust should not be deemed a commodity pool as defined by the Commodities laws.
The need for regulatory clarity in the filing hinges on the present legal situations between the US SEC and several crypto exchanges and financial organizations in the industry.
“The Exchange proposes to list and trade the Shares of the Fidelity Ethereum Fund under BZX Rule 14.11(e)(4), which governs the listing and trading of Commodity-Based Trust Shares on the Exchange,” the filing stated.
It also added:
“According to the Registration Statement, the Trust is neither an investment company registered under the Investment Company Act of 1940, as amended,’ nor a commodity pool for purposes of the Commodity Exchange Act (“CEA”), and neither the Trust nor the Sponsor is subject to regulation as a commodity pool operator or a commodity trading adviser in connection with the Shares.”
Fidelity Outlines Innovative Structure on Its Ethereum ETF Similar to BlackRock’s Ethereum Spot ETF filing submitted on Thursday, Fidelity Investments has provided a very detailed overview of the structure of its proposed Ethereum ETF as well as its use cases.
In the filing, Fidelity stated that the Trust’s unique structure ensures that each share issued by the company would signify a fractional and undivided beneficial stake in the overall net assets of the Trust. Additionally, the assets in the Trust would hold only ETH tokens governed by the Custodian appointed to manage the Trust.
“Each Share will represent a fractional undivided beneficial interest in the Trust’s net assets. The Trust’s assets will consist of ETH held by the Custodian on behalf of the Trust. The Trust generally does not intend to hold cash or cash equivalents. However, there may be situations where the Trust will unexpectedly hold cash on a temporary basis,” the filing stated.
ETH bulls fail to reclaim $2,000 | Source: ETHUSDT on Tradingview.com Featured image from Crypto Daily, chart from Tradingview.com
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Scott Matherson Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.