In a strategic move, Fidelity, a renowned American financial services corporation, has officially filed for its Spot Ether ETF. This comes on the heels of its recent refiling for a spot Bitcoin ETF.
Addressing any potential concerns, the filing clarifies in Item 6 that it has not granted consent to the Securities and Exchange Commission (SEC) for an extension of the time period under Section 19(b)(2) of the Act.
Filer Identity Confirmed: Cboe BZX Exchange Inc.
Dispelling doubts surrounding authenticity, the application has been legitimately filed by Cboe BZX Exchange Inc., a major U.S. equities market operator. The filing, under form number 19b-4, proposes the listing and trading of shares for the Fidelity Ethereum Fund under BZX Rule 14.11, Commodity-based Trust Shares. Notably, Kylie Murray, the VP and Associate General Counsel at Cboe Global Markets, has duly signed the filing. Sarah Tadtman, Senior Counsel, is designated to respond to SEC inquiries.
BlackRock’s Comparable Moves Intensify Competition
Following BlackRock’s earlier submission of proposals mirroring Fidelity’s, the competition has heightened. BlackRock initiated its spot Bitcoin ETF filing in June, and recently, on November 15, submitted an S-1 filing for its Ethereum ETF. BlackRock’s colossal $9 trillion assets under management position it as the world’s largest asset manager, with Fidelity managing $4.2 trillion, securing its position as the third-largest globally.
Fraud Prevention and Market Integrity: Key Objectives
The proposed filing aims to combat fraudulent and manipulative practices, uphold just and equitable trade principles, foster cooperation in securities transactions, and enhance market mechanisms. Aligned with Section 6(b) of the Act and, specifically, Section 6(b)(5), the Exchange believes it will safeguard investors, promote a free and open market, and serve the public interest.
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