**SEC Seeks Public Opinion on Fidelity Ethereum Fund**
In a significant turn of events that could shape the future of the crypto market, the United States Securities and Exchange Commission (SEC) issued a call for public opinion on a proposed rule change that could allow Fidelity Investments, a pioneering asset management firm, to list and trade shares of the Fidelity Ethereum Fund. The SEC’s announcement aims to gather feedback from “interested persons” on Fidelity’s proposal for an Ethereum (ETH) exchange-traded fund (ETF).
**Fidelity’s Proposal and Implications on the Crypto Market**
Fidelity made the application on November 17, seeking approval to trade shares of its Fidelity Ethereum Fund on the Cboe BZX Exchange. In its filing, Fidelity emphasized the necessity of an exchange-traded product (ETP) that holds spot ETH, highlighting the risks that U.S. investors currently face due to the absence of such a product. The SEC’s approval of this proposal would reflect a pivotal shift in the regulatory landscape and could potentially propel crypto assets into the mainstream financial market.
The news has fueled positivity among investors, evidenced a surge in Bitcoin‘s value and a 3% increase in Ethereum’s price in the 24 hours following the announcement. The prevailing optimism suggests that the SEC might be moving away from its previous stance of delaying approval of these pending applications, potentially paving the way for the mainstream adoption of cryptocurrencies.
**Rise of Traditional Finance Giants in Crypto Space**
This development has also created opportunities for several traditional finance giants who have ventured into the crypto ETF race. Notably, Blackrock, Inc., the world’s largest asset manager, applied to launch a crypto exchange-traded fund in June, despite currently holding a Zacks Rank #3 (Hold).
Another significant player, Invesco Ltd., initially filed for a Bitcoin ETF in 2021 and later re-entered the race to launch 2024. While Invesco is currently projected to carry a Zacks Rank #4 (Sell), this move signifies the firm’s ambition to cement its place in the crypto space. Joining them is WisdomTree, Inc., an ETF sponsor and asset manager, which applied for a spot in the crypto ETF space in June 2023. WisdomTree currently holds a Zacks Rank #4, hinting at the company’s desire to align with the shifting trends in the financial market.
The SEC’s call for public opinion confirms that a significant transition may be underway in the crypto market, with traditional financial institutions making substantial strides in embracing digital assets. The potential changes could reshape the future of finance and have a profound impact on investors in the near future.
I’m a cryptocurrency and blockchain technology journalist. My work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and VentureBeat. I’ve been a respected voice in the cryptocurrency community and my insights into the industry have helped shape its development.