Fidelity Investments, a major player in the asset management industry overseeing $4.5 trillion in assets, has made an intriguing 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 plans to include staking capabilities in their Fidelity Ethereum Fund.
This development comes after the SEC’s landmark approval of the first Spot Bitcoin ETF in the United States earlier this year. The approval of digital asset investment products gained attention when Fidelity was among the first eleven issuers to receive approval for a Spot Bitcoin ETF. With Bitcoin’s value reaching new highs in March 2024, approval became a crucial factor in the cryptocurrency’s development.
Seeing the success of Spot Bitcoin ETFs, many are now wondering which cryptocurrency will be next in line for similar treatment. Ethereum, the second most valuable cryptocurrency by market value, quickly rose to the forefront. Fidelity’s recent filing reveals their strong desire to expand their 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 about the possibility of an Ethereum Spot ETF. Despite these challenges, 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 a potentially smoother process for Ethereum ETF proposals.
Today’s highlighted crypto news includes the anticipation of a significant rally for Shiba Inu, mirroring the breakthrough it experienced in 2021.
