In a recent report, Fidelity Investment seeks to expand its product offering by introducing the Ethereum exchange-traded funds (ETF). On Thursday, November 16, the Fidelity team filed for the Ethereum ETF with the US Securities and Exchange Commission (SEC).
This impressive move aims at positioning Fidelity among the best asset managers across the world. The proposal was submitted a day after its top rival, BlackRock, had filed for an Ethereum ETF with the SEC. Apart from BlackRock, other asset managers, including VanEck, HashDex, Grayscale, and 21 Shares, among others, have already submitted their Ethereum spot ETFs.
Fidelity Seeks to Offer Customer Ethereum Exposure
From the multiple applications Fidelity has developed a unique approach to gain a competitive advantage. The report revealed that the Fidelity Ethereum spot ETF will enable the user to track the price performance of Ether (ETH) through Fidelity Ethereum Index.
Consequently, the asset manager plans to list the Fidelity Ethereum spot ETF on the Cboe BZX exchange under the ticker symbol ETHF. The Fidelity team confessed that the Ethereum spot ETF filing aims at enabling the US retail customer to gain exposure to digital assets.
The assets manager regretted that the lack of comprehensive legislation for crypto assets in the US had forced the investors to turn to conventional exchange-listed and other traded products. In an email statement, Fidelity’s spokesperson confirmed that the growing interest among the customers for an Ethereum spot ETF challenged the firm to take strategic action and file its proposal to the relevant authority.
The spokesperson noted that a significant number of Fidelity customers had demonstrated their willingness to invest in digital assets. He vowed that the Boston-based asset manager will remain committed to offering the esteemed customers a unique portfolio of solutions.
Fidelity Investment to Offer Ethereum Spot ETF
This portfolio will provide customers with a platform to explore different investment options. The spokesperson added that Fidelity will equip their customers with relevant knowledge crucial to making informed financial decisions.
Beyond this, the asset manager plans to extend their staunch support to enable the users to meet their financial obligations. Elsewhere, the chief executive of Fidelity, Abigail Johnson, confessed that for a long time, the asset manager has been aiming to integrate crypto assets in its product offering.
Last year, the Fidelity team introduced a Digital Asset Account (DAA) to allow employees to buy crypto assets. The assets manager confirmed that the eligible 401K employees could access the DAA.
The launching of the DAA raised concerns among US policymakers. In July, the US policymakers recognized the unique features of the Fidelity Investment retirement plan. However, the lawmakers were a bit skeptical that the Fidelity DAA might expose the employees to the inherent risk of Bitcoin.
With the changes in the financial landscape, the Fidelity team noted the potential gaps in the market that limit investors from venturing into low-risk investments such as the Ethereum ETF. The asset management pointed out challenges faced by investors seeking to tap the endless benefits of crypto assets.
These challenges include legal uncertainty in the US, technical challenges, and counterparty risks.Citing the variety of spot crypto assets in the European market, the Fidelity team blamed the US government for restricting the public from gaining exposure to digital assets.
Recently, the European regulators approved the Bitcoin ETF application submitted by the Jacobi group. The approval allowed the financial institution to list its Bitcoin spot ETF on the Euronext Amsterdam Stock Exchange on August 15.
SEC Delays to Approve ETFs
An announcement conveyed by James Seyffart, a renowned ETF research analyst, revealed that the Fidelity application was among the seven Ethereum ETF applications submitted to the SEC. The executive stated that BlackRock leads other asset managers in applying for the Bitcoin and Ethereum ETF.
He confessed that BlackRock boasts of managing assets worth around $8.5 trillion, while Fidelity has $4.5 trillion in assets under management. The BlackRock team anticipated that by launching the Bitcoin ETF, the investors would gain exposure to digital assets.