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Ethereum ETF: Fidelity Submits Application to Crypto Regulator!

Thu 28 Mar 2024 ▪ 3 min of reading ▪ by Eddy S.
Getting informed Crypto regulation

In this month of March 2024, Fidelity Investments has sent shockwaves through the crypto industry. The investment company has submitted a form to the SEC for an Ethereum ETF. Moreover, this decision follows the historical SEC approval of the Bitcoin spot ETF in early 2024. Many crypto investors anticipated that Ethereum would be the next cryptocurrency to receive such a revolutionary investment product.

Crypto ETF Ethereum

The Bitcoin Precedent, a Springboard for Ethereum

At the beginning of 2024, the SEC approved the first US Bitcoin spot ETF, thus shaking the crypto sector. It was a major turning point for the digital asset sector as a whole. Indeed, this decision has thrust Bitcoin, the leading cryptocurrency, to record highs this year. Thus, BTC reached $73,000 in March 2024. Moreover, experts predict that this is just the beginning for this pioneering cryptocurrency. After such a regulatory breakthrough, its prospects are tremendous.

Consequently, the resounding success of the Bitcoin ETF led many crypto investors to wonder what the next major cryptocurrency to receive such a financial product might be. Moreover, the answer seemed obvious to most: Ethereum. Being the cryptocurrency with the second-largest market capitalization, it was the natural choice.

Fidelity Places Its Bet on Ethereum’s Crypto Future

In November 2023, Fidelity had already filed an application for a spot Ethereum ETF, joining other crypto sector giants like BlackRock, VanEck, and ARK Invest. But it’s now official with the recent submission of the S-1 form for the “Fidelity Ethereum Trust.” Additionally, this crypto fund is expected to issue shares traded on the CBOE including staking.

However, the prospect of an Ethereum ETF remains controversial due to a potential legal campaign by the SEC. Indeed, the regulator threatens to consider ETH as a security in the world of cryptocurrencies. Nonetheless, the legal director of Grayscale, Craig Salm, remains confident about the imminent approval. According to him, after the Bitcoin precedent, the process should be simpler for Ethereum, a major cryptocurrency.

With this stunning announcement in the crypto universe, Fidelity is betting big on Ethereum’s future following the success of the Bitcoin ETF. Indeed, despite regulatory uncertainties, the approval of such a cryptographic investment product could provide an additional boost to the adoption of the Ethereum blockchain. Hence, all eyes in the crypto sector are now turned to the eagerly awaited SEC decision in the coming months.

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Eddy S. avatar
Eddy S.

Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.