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Will SEC's Comment Period On Fidelity's Spot Ethereum ETF Application Lead To Regulated Investment Options?

Published 30/11/2023, 23:10
© Reuters Will SEC's Comment Period On Fidelity's Spot Ethereum ETF Application Lead To Regulated Investment Options?

Benzinga - The U.S. Securities and Exchange Commission (SEC) opened a forum for the public to comment on a proposed rule change that could allow asset management firm Fidelity to offer shares of its spot Ethereum (CRYPTO: ETH) exchange-traded fund (ETF).

What Happened: In an official notice, SEC said that “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.”

A timeline of 21 days is provided to comment on the proposed change under which Cboe BZX Exchange will be allowed to list and trade shares of its Fidelity Ethereum fund.

Fidelity had first filed for approval of the fund on Nov.17, 2023, in hopes of the SEC approving a spot Bitcoin ETF. On approval, the Fidelity Ethereum Fund would be listed on the Cboe BZX Exchange.

Why It Matters: The filing added, “Meanwhile, investors in other countries, including Germany, Switzerland, and France, are able to use more traditional exchange-listed and traded products (including exchange-traded funds holding physical ETH) to gain exposure to ETH.

"Investors across Europe have access to products that trade on regulated exchanges and provide exposure to a broad array of spot crypto assets. U.S. investors, by contrast, are left with fewer and more risky means of getting ether exposure.”

Analyst James Seyffart took to X and stated that with this filing, a 240-day clock (review period) has commenced for a decision on Fidelity’s spot Ethereum ETF. Definitive deadlines are likely to come in the upcoming weeks.

Shares tied to Bitcoin Futures ETF were first listed and traded by exchanges in October 2021 and nine Ethereum futures ETFs were launched in October 2023.

Read Next: Bitcoin Edges Up, Dogecoin And Ethereum Diverge As BTC ETF Landscape Expands: Analysts Sees Apex Crypto Breaking $38K

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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