Financial services firm Fidelity joins the list of companies looking to offer US investors an Ethereum (ETH) exchange-traded fund (ETF) on the spot market.
A new submit with the US Securities and Exchange Commission (SEC), it appears that the $4.5 trillion asset manager wants to list and trade shares of the Fidelity Ethereum Fund.
“Under the Registration Statement, each Share represents a fractional, undivided beneficial interest in the net assets of the Trust. The assets of the Trust will consist of ETH held by the Custodian on behalf of the Trust. The Trust generally does not intend to hold cash or cash equivalents.”
The filing states that the absence of a regulated, exchange-traded vehicle for gaining exposure to ETH exposes investors to counterparty risk, legal uncertainty, complexity and other disadvantages.
“To date, the approval of a Spot ETH ETP (exchange traded product) would represent a major win for the protection of US investors in the crypto asset space. The Trust, like all other series of Commodity-Based Trust shares, is designed to protect investors against the risk of losses due to fraud and insolvency arising from holding digital assets, including ETH, on centralized platforms. ..
The Trust, like all other series of Commodity-Based Trust shares, is designed to protect investors against the risk of losses due to fraud and insolvency arising from holding digital assets, including ETH, on centralized platforms. ”
Other companies awaiting regulatory approval for an Ethereum ETF on the spot market include BlackRock and Hashdex.
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Featured image: Shutterstock/Art Furnace