Fidelity Investments has recently submitted an application for a spot Ethereum exchange-traded fund (ETF), according to a filing with the Securities and Exchange Commission (SEC) dated November 17.
Cboe BZX files a 19b-4 document for rule change to list and trade Fidelity’s proposed fund shares. This Ethereum ETF proposal closely mirrors Fidelity’s previously submitted spot Bitcoin ETF proposal from late June.
In a race reminiscent of their main competitor, BlackRock, both asset management giants are competing for spot Bitcoin ETFs. These funds have the potential to revolutionize crypto investment in the United States.
BlackRock and Fidelity file For Ethereum ETF as SEC decides on Bitcoin ETFs
The temporal proximity of the filings is likely attributed to the significant stature of each asset manager. BlackRock, the world’s largest asset manager with $9 trillion in assets under management, filed for its spot Ethereum ETF on November 15, following its spot Bitcoin ETF application in June.
Fidelity, the third-largest global asset manager with $4.2 trillion in assets under management, is closely following suit.
Several other asset managers have also submitted applications for spot Bitcoin ETFs and spot Ethereum ETFs subsequent to the high-profile submissions by BlackRock and Fidelity.
The SEC is anticipated to make a decision on a Bitcoin ETF by January 10, 2024, specifically pertaining to ARK Invest’s application submitted in May, about a month before BlackRock’s influential filing. This decision could potentially impact other pending ETF applications, given their intentional similarities to meet anticipated requirements.
SEC’s Evaluation of Spot Ethereum ETFs Signals Potential Path for Spot Bitcoin ETF Approval
While the SEC will evaluate spot Ethereum ETFs independently from spot Bitcoin ETFs, the approval of one may open doors for the other. Notably, the SEC has not yet greenlit any Bitcoin or Ethereum spot ETFs. However, it has granted approval for futures ETFs of both types in recent months and years.