Fidelity Investments goes ahead with the spot Ether ETF proposal

Despite all the negativity surrounding applications for spot Ether ETF, Fidelity Investments has decided to continue pursuing its plans. There seems to be total clarity on the fact that the company intends to release an ETH ETF in November, when Cboe, the exchange where the product will be traded, filed a 19b-4 form on the part of Fidelity.

Presently, Fidelity has submitted a listing statement called Form S-1, signifying yet another move towards securing the consent for the Fidelity Ethereum Fund.

The Securities and Exchange Commission (SEC) will be required to consent to the 19b-4 and accept the viability of the S-1 form before the fund receives the right to trade.

Fidelity did not mention the related product fee in the last filing. Like in other filings, the fund’s registration statement contains details regarding its intentions of staking a segment of the trust’s assets through single or multiple staking framework providers.

As a resultant factor related to all staking acts wherein the trust is allowed to connect, the trust expects to obtain some staking rewards of Ether in the form of federal income tax.

As per the disclosure, Fidelity Digital Asset Services will have complete ownership and control over the private keys related to every staked Ether.

Fidelity is one amongst many issuers looking to introduce a spot Ether ETF, a short while following the SEC’s greenlit spot BTC funds. SEC is expected to announce its ruling regarding ETFs for holding ETH directly towards the end of May.

Industry observers feel it is possible to deliver such funds but fear the SEC will try its best to procrastinate the issue. There is another faction that seems to be more positive-minded, following the consent for spot BTC funds.

In the words of the founder of SkyBridge Capital, Anthony Scaramucci, he is apprehensive that the SEC Chair, Gary Gensler, will adopt delaying tactics.

In the opinion of the Chief Operating Officer at Gemini, Marshall Beard, the matter may be extended by another nine months for any real outcome.

The list of ten spot bitcoin ETFs has witnessed earnings to the tune of $11.7 billion from its introduction on the 11th of January. One more fund became a part of it as Hashdex’s bitcoin futures fund was given the go-ahead for holding BTC directly.