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BlackRock And Fidelity Collectively Purchased $500M Of ETH In 48 Hours

Published 12/12/2024, 11:14
Updated 12/12/2024, 11:40
© Reuters.  BlackRock And Fidelity Collectively Purchased $500M Of ETH In 48 Hours
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Crypto Daily - BlackRock (NYSE:BLK) and Fidelity, two of the largest exchange-traded fund (ETF) issuers, have purchased over $500 million worth of ETH over the past two days.

The purchase was made primarily through Coinbase (NASDAQ:COIN) and its institution-focused crypto services platform, Prime.

BlackRock And Fidelity’s Collective ETH Purchase

BlackRock and Fidelity are two of the largest ETF issuers, with their ETHA and FETH leading the all-time high inflows registered on November 30. According to the available market data, BlackRock’s ETHA brought in $372 million, while Fidelity’s FETH brought in $103 million on December 10. Details about the ETH purchase were revealed by crypto data tracking platform, Arkham, which revealed the financial giants bought $500 million worth of ETH in 48 hours. According to Arkham, both firms completed the purchase through Coinbase or its institution-focused crypto services platform, Prime.

“PAST 48 HOURS: BLACKROCK AND FIDELITY BOUGHT OVER HALF A BILLION USD OF ETH.”

The move shows that both ETF issuers are taking significant action in their portfolio by acquiring more ETH after receiving approval from the United States Securities and Exchange Commission. BlackRock’s iShares Ethereum Trust ETF (ETHA) is the largest issuer with inflows of up to $2.93 billion. Fidelity’s Fidelity Ethereum Fund (FETH) is the second-largest issuer, with inflows of up to $1.35 billion.

BlackRock And Fidelity’s Plans With Ethereum

BlackRock is planning to start Ether ETF spot trading options. As of now, ETHA is the only ETF listed on Nasdaq. However, the decision will only be announced by the Securities and Exchange Commission (SEC) in April 2025. Some experts have stated that BlackRock will also need approval from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC).

Fidelity recently filed a proposal for a spot Ethereum ETF with the Securities and Exchange Commission. The proposal also included staking and will track the performance of Ethereum. According to the company, the Fidelity Ethereum Fund will issue shares on the Chicago Board Options Exchange (CBOE).

“The Fidelity Ethereum Fund (the ‘Trust’) is an exchange-traded product that issues shares of beneficial interest and seeks to list and trade on the Cboe BZX Exchange, Inc. The Trust’s investment objective is to track the performance of ether, as measured by the performance of the Fidelity Ethereum Reference Rate, adjusted for the Trust’s expenses and other liabilities,” the company detailed in the filing.”

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.

This content was originally published on Crypto Daily

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