Apr 09, 2024

Fidelity Ahead of the Curve as it Files for a Spot Ethereum ETF With Staking

  • Fidelity Wise is an investment firm with more than $4.5 trillion of assets under its watch. They recently applied for the approval of a spot Ethereum ETF, which will also include staking.
  • The investment firm, together with Blackrock and Ark Invest, previously filed for the same spot ETF in November 2023. However, there are speculations of challenges due to the SEC’s recent move to classify Ethereum as a security.

The race for the approval of the spot Ethereum ETF has begun with $4.5 trillion investment firm Fidelity leading the way. Recently, it filed for an S-1 form for a Spot Ethereum ETF with staking included.

This was according to an official statement filed on March 27 with the US Securities and Exchange Commission (SEC). Furthermore, the spot ETH ETF will be called Fidelity Ethereum Fund.

Fidelity Files An S-1 Form for a Spot Ethereum ETF

Within the crypto community, 2024 started on a good note, with the Securities and Exchange Commission approving the spot Bitcoin ETF applications. Apparently, Fidelity was among the 11 approved ETF applicants. Since the approval of the spot Bitcoin ETFs, it has become an instant success, contributing as one of the catalysts of Bitcoin’s new all-time high of $73,000. Moreover, many experts and analysts believe this is just the beginning in the spot ETF market.

With Bitcoin Spot ETFs being successful, questions soon began to arise on which other cryptocurrency could be the next. So, there were speculations around Ethereum and even Dogecoin. However, an Ethereum Spot ETF seems to be the most viable now, as Fidelity has made a move by applying. Apparently, this application wants to include staking of Ethereum tokens.

“The Trust provides exposure to the value of ether, and the Shares of the Trust are valued on a daily basis using the same methodology used to calculate the Index. The Trust provides investors with the opportunity to access the market for ether through a traditional brokerage account without the potential barriers to entry or risks involved with holding or transferring ether directly or acquiring it from an ether spot market,” the filing said.

Previous Spot Ethereum ETF Applications

Fidelity initially filed for a spot Ethereum ETF last December, joining other Investment firms such as Ark Invest and Blackrock. According to the filing’s details, the Fidelity Ethereum Fund would issue shares that trade on the Chicago Board Options Exchange (CBOE). Nevertheless, everything indicates that it won’t be easy for any investment firm to get approval for a spot ETH ETF. Apparently, there are already several legal engagements with federal agencies trying to implicate Ether as a security.

There are already rumors that the SEC is seeking a legal campaign against Ethereum in its bid to classify it as security. In fact, the SEC is allegedly investigating the Ethereum Foundation, a non-profit organization that supports Ethereum. Furthermore, the commission also served subpoenas to different companies in a bid to classify ETH as a security. According to a report from Fortune, the SEC is seeking “documents and financial records that they may have regarding their dealings with the Ethereum Foundation.” Nevertheless, GrayScale chief legal officer Craig Salm says the approval of the spot Ethereum ETFs won’t be as challenging as people predict.

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