Fidelity Investments officially files for a Spot Ethereum Exchange-Traded Fund (ETF), as it cites the Grayscale ruling to get the SEC’s approval.
According to a filing with the United States Securities and Exchange Commission (SEC), Fidelity has become the latest financial giant to file for a spot Ether ETF.
The filing, submitted by Cboe BZX, proposed a rule change that would allow the exchange to list Fidelity’s proposed ETH fund.
It bears mentioning that the proposal closely resembles Fidelity’s spot Bitcoin ETF proposal, which was submitted to the SEC in June.
Fidelity Cites Grayscale Ruling
To get its proposal approved, Fidelity cited the recent ruling in the Grayscale case, where the court rebuked the SEC for not having a coherent reason for rejecting spot crypto ETFs.
Recall that Grayscale took legal action against the SEC for rejecting its application for a spot Bitcoin ETF. Interestingly, the crypto asset manager won the legal tussle, as an Appeal Court ordered the SEC to review its decision to deny Grayscale’s application.
BlackRock and Grayscale Submits Similar Filing
Notably, Fidelity’s ETH ETF proposal comes days after BlackRock, the world’s largest asset manager, filed a similar application with the SEC.
As reported earlier, the financial giant submitted an S-1 filing for a spot-based Ethereum exchange-traded fund. Both Fidelity and BlackRock have also applied with the SEC to launch a spot Bitcoin ETF.
Aside from Fidelity and BlackRock, other asset managers, including Grayscale, have also made similar efforts to launch spot-based exchange-traded funds for Bitcoin and Ethereum.
SEC Faces January 10 Deadline on Spot Bitcoin ETF Application
The securities regulator is expected to issue its decision regarding whether to approve or reject the launch of a spot Bitcoin ETF by January 10, 2024.
Notably, the decision stems from Ark Invest’s Bitcoin ETF application, which was submitted in May, a month before BlackRock and Fidelity applied to launch a similar fund.
The SEC has previously denied multiple spot Bitcoin ETF applications from top companies, including Grayscale. However, several analysts believe the regulator would approve one or more of the spot crypto ETF applications this time.
According to these analysts, BlackRock and other top financial giants’ involvement in the race could be the game changer for the launch of a spot crypto ETF. Analysts also forecast that the Grayscale ruling could prompt the SEC to approve a spot crypto ETF.
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