In March 2024, Fidelity Investments created shock waves in the crypto industry. The investment firm has submitted a form with the SEC for an Ethereum ETF. Moreover, this decision follows the historic approval by the SEC of the Bitcoin spot ETF in early 2024. Many crypto investors expected that Ethereum would be the next crypto to receive such a product from revolutionary investment.
The Bitcoin precedent, a springboard for Ethereum
In early 2024, the SEC approved the first spot Bitcoin ETF in the United States, shaking up the crypto sector. This was a major turning point for the digital assets sector as a whole. Indeed, this decision propelled Bitcoin, the leading crypto, to record highs this year. Thus, BTC reached $73,000 in March 2024. Moreover, experts predict that this is just the beginning for this pioneering crypto. Because after such regulatory progress, its prospects are immense.
Therefore, the runaway success of the Bitcoin ETF has led many crypto investors to wonder what could be the next big cryptocurrency to receive such a financial product. Besides, the answer seemed obvious to most: Ethereum. With the second largest market capitalization, this cryptocurrency was the natural choice.
Fidelity makes its bet on the crypto future of Ethereum
In November 2023, Fidelity had already filed a demand of Ethereum spot ETF, joining other crypto industry giants like BlackRock, VanEck and ARK Invest. But it’s now official with the recent filing of Form S-1 for the “Fidelity Ethereum Trust.” Additionally, this crypto fund is expected to issue shares traded on the CBOE including staking.
However, the prospect of an Ethereum ETF remains controversial due to a potential SEC legal campaign. In fact, the regulator threatens to consider ETH as a security in the world of cryptocurrencies. Nonetheless, Grayscale's chief legal officer, Craig Salm, remains confident about imminent approval. According to him, after the previous Bitcoin, the process should be simpler for this major crypto that is Ethereum.
With this shocking announcement in the crypto universe, Fidelity is betting big on the future of Ethereum after the success of the Bitcoin ETF. Indeed, despite regulatory uncertainties, the approval of such a crypto investment product could provide an additional boost to the adoption of the Ethereum blockchain. Thus, all eyes in the crypto sector are now on the highly anticipated SEC decision in the coming months.
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