Table of Contents
- Welcoming Public Opinion
- Fidelity's Move Into the Fray
- U.S. Investors' Challenges
- SEC's Historical Stance and Possible Shift
The US Security and Exchanges Commission (SEC) has opened the floor for public comments on Fidelity's application for a spot Ethereum exchange-traded fund (ETF).
Welcoming Public Opinion
In a recent development, the SEC has opened the floor for public commentary on a proposed rule change that could pave the way for Fidelity to introduce shares of its spot Ether exchange-traded fund (ETF). The SEC issued a notice on November 30, urging individuals to share their insights on the Fidelity spot Ethereum ETF application.
The regulatory body has extended an invitation to interested parties, stating,
"Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act."
The Commission has initiated this call to solicit comments on the proposed rule change, providing a 21-day window for individuals to express their opinions on the matter.
Fidelity's Move Into the Fray
Fidelity made its intentions clear on November 17 by filing for approval of the fund, joining a growing list of firms vying for a spot crypto ETF in the United States. The application outlines a rule change that, if approved, will empower Fidelity to list and trade shares of the Fidelity Ethereum Fund. The fund's primary objective is to track the performance of Ether (ETH), factoring in deductions for the Trust's expenses and other liabilities.
U.S. Investors' Challenges
The filing underscores a global discrepancy, noting that investors in various countries, including Germany, Switzerland, and France, already have avenues to gain exposure to Ether through exchange-traded products. However, the United States currently lacks a regulated and exchange-traded vehicle. The filing contends that this absence leaves U.S. investors with limited and riskier alternatives for obtaining Ether exposure.
The filing highlights the critical issue:
"The lack of an ETP that holds spot ETH exposes U.S. investor assets to significant risk because investors that would otherwise seek crypto asset exposure through a Spot ETH ETP are forced to find alternative exposure through generally riskier means."
SEC's Historical Stance and Possible Shift
Despite numerous firms submitting applications over the years, the SEC has not approved any spot cryptocurrency exchange-traded product or fund for U.S. markets. However, there is growing speculation that the regulator might be nearing a decision on approving a spot crypto ETF for listing on U.S. markets. If such approval materializes, it could mark a pivotal moment in fostering mainstream crypto adoption, a positive trend eagerly awaited by many in the industry.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
