Key Points
The odds of Spot Ethereum Exchange-Traded Funds (ETFs) getting approval may be dropping.
However, several financial management firms applying for these products remain optimistic.
Fidelity’s Updated Ethereum Spot ETF Application
In light of the anticipation surrounding Ethereum spot ETFs, financial management giant Fidelity has updated its application for these exchange products.
This move suggests a strong belief in potential approval by the United States Securities and Exchange Commission (SEC).
Nate Geraci, Chairman and President of The ETF Store, shared this update on social media.
He stated that the amendment includes a more comprehensive analysis of the relationship between the spot and futures markets.
Fidelity joined the race to launch an Ethereum ETF in November last year.
Other contenders for these ETFs include Grayscale, Ark Invest, 21Shares, and BlackRock, among others.
Geraci highlighted that the updated application acknowledges the approval of a spot Bitcoin ETF.
He also shared an excerpt from the most recent filing, stressing that the SEC will be held accountable by Ethereum ETF issuers.
According to the filing, Fidelity argues that the firm correlation between Ethereum and Bitcoin futures offered by Chicago Mercantile Exchange (CME) suggests that the same grounds used by the SEC to approve a spot Bitcoin product should be used for this proposal.
Fidelity believes that the SEC’s expectation of CME’s surveillance identifying potential deceptive and manipulative acts implies that Ethereum ETFs should be evaluated using the same logic.
By updating its application, Fidelity aims to allow traders and users in its proposed Ethereum fund to stake a portion of the assets.
The Registration Statement states that the fund may occasionally stake a portion of its assets through one or more reputable staking providers.
The fund would receive specific network rewards in the form of Ether tokens for any staking activity it undertakes.
These rewards could be seen as income for the fund in return for the services provided.
Amendment to Grayscale’s ETH ETF Proposal
Fidelity follows Grayscale in amending its Ethereum spot ETF application.
Grayscale reported last Friday that it had updated its proposal for the products, marking a crucial step in uplisting ETHE to NYSE Arca.
Grayscale believes that the case for spot ETH ETFs is as strong as that for spot Bitcoin ETFs.
The firm thinks that investors need and deserve exposure to ETH in this respect.
In accordance with the Securities Exchange Act of 1934, as amended, Section 19(b) and Rule 19b-4, NYSE Arca plans to list and trade the shares of the following under NYSE rule 8.201.
