Fidelity and BlackRock Increase Crypto Bet with Ether ETF Plan

• Fidelity Joins Race to Establish Ether ETF
• Consideration of Bitcoin ETFs by SEC
• Fidelity's Proposed Ethereum Fund
• Bitcoin (BTC) ETFs on the Horizon
• ETFs Holding BTC or ETH Could Transform the Crypto Market

Fidelity Joins Race to Establish Ether ETF

Following the footsteps of other major financial institutions, Fidelity has submitted an application to establish an Ether exchange-traded fund (ETF). However, the Securities and Exchange Commission (SEC) approval is required before these applications can commence trading within the U.S. territory.

Consideration of Bitcoin ETFs by SEC

The SEC is also considering the establishment of Bitcoin$42,260 -0.64% ETFs, which could potentially simplify the investment process into crypto-linked assets for the average person.

Fidelity's Proposed Ethereum Fund

A recent filing reveals that Fidelity, a leading money management firm, is in the process of creating an ETF that will own Ethereum$2,315 -2.42%'s Ether (ETH). This move signifies Fidelity's intensified efforts in the cryptocurrency sector, aligning it with its competitor, BlackRock.

The proposed Fidelity Ethereum Fund will be listed by an exchange owned by Cboe Global Markets. This information came to light after the latter filed a document disclosing the proposed product's existence. However, getting this ETF off the ground isn't straightforward as the U.S. Securities and Exchange Commission must first approve it. This same process applies to other proposed ETFs, including one from BlackRock, which was revealed earlier in the month.

Bitcoin (BTC) ETFs on the Horizon

Both Fidelity and BlackRock are keen on creating ETFs that would simplify investors' access to Bitcoin (BTC), the largest cryptocurrency by market capitalization. However, the SEC has not yet given feedback on these proposed Bitcoin ETFs.

ETFs Holding BTC or ETH Could Transform the Crypto Market

Optimists believe that ETFs holding BTC or ETH, the two largest cryptocurrencies, could dramatically transform the crypto market. ETFs are usually easier to purchase than cryptocurrencies. A conventional brokerage account allows investors to access a wide range of ETFs, which trade similarly to stocks and track a diverse range of assets, from the entire stock market to gold, corn, and sugar.

This development could theoretically attract a tsunami of new investments into digital assets, especially with the marketing prowess of renowned firms such as Fidelity and BlackRock.

Edited by Jonathan Stoker