[NEWS] SEC seeks public comment on Fidelity's Ethereum spot ETF

The SEC (U.S. Securities and Exchange Commission) has begun accepting public comments on the Fidelity Ethereum Fund, an Ethereum spot ETF being applied for by asset management company Fidelity. The submission period will be 21 days.

If the Fidelity Ethereum Fund is approved, it will be listed on the Cboe BZX Exchange.

The start of public comment acceptance marks an important step in the listing review. It reflects the growing interest in cryptocurrencies as mainstream financial assets and the possibility of regulatory acceptance of them.

Fidelity predicts that the SEC will soon approve a Bitcoin spot ETF, and applied for approval of an Ethereum spot ETF on the 17th of last month. If a Bitcoin spot ETF is approved, it is likely that a spot ETF for Ethereum (ETH), the second largest cryptocurrency by market capitalization, will also be approved.

Pointing out the US's delay

According to the filing, "Investors in other countries, such as Germany, Switzerland and France, have been able to gain exposure through Ethereum spot ETFs listed on more traditional exchanges. European investors have access to products traded on regulated exchanges, providing exposure to a wide range of crypto assets in the physical form. Meanwhile, similar access opportunities are lagging in the US market."

Furthermore, due to regulations, there are no exchange-traded Ethereum spot products, so US investors are exposed to high risks as their options for gaining exposure to Ethereum are limited. Against this background, the filing claims that approval of an Ethereum spot ETF will allow investors to access crypto assets safely.

The filing also emphasizes the safety of an Ethereum spot ETF in risk management. It explained that approval of the product would be a major step forward in investor protection in the cryptocurrency space.

Bloomberg ETF analyst James Seyffart said on his X (formerly Twitter) that "the 240-day clock has started for Fidelity's decision on an Ethereum spot ETF."

The final deadline is expected to be decided within the next few weeks, but the SEC may postpone its decision.

As with the Bitcoin futures ETF, the Ethereum futures ETF has already been approved and trading has begun. Therefore, after the Bitcoin spot ETF is approved, discussions on the Ethereum spot ETF are expected to accelerate.

Reference:Documents
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