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Fidelity Investments Files for Ethereum Spot ETF Amidst Growing Interest in Cryptocurrency Market

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Fidelity Investments Joins the Ethereum ETF Race

Fidelity Investments, the American multinational financial service corporation, has officially filed for an Ethereum Spot Exchange Traded Fund (ETF) with the United States Securities and Exchange Commission (SEC). This comes as the cryptocurrency market experiences a surge of interest in Ethereum ETFs.

Second ETF Filing from Fidelity Investments

This is the second ETF filing from Fidelity Investments, following their previous filing for a Spot Bitcoin ETF. The Bitcoin ETF is still awaiting approval from the SEC.

Distinct Details in the Filing

In their Ethereum ETF filing, Fidelity Investments outlined the framework for the listing and trading of Trust shares on the exchange. The filing clarified that the Trust backed by Fidelity Investment should not be considered an investment company or a commodity pool under relevant laws.

Regulatory Clarity and Legal Situations

The need for regulatory clarity is highlighted in the filing, given the ongoing legal situations between the SEC and various crypto exchanges and financial organizations. Fidelity Investments proposes to list and trade the Fidelity Ethereum Fund shares under BZX Rule 14.11(e)(4), which governs the listing and trading of Commodity-Based Trust Shares on the exchange.

Detailed Structure and Use Cases

Similar to BlackRock's Ethereum Spot ETF filing, Fidelity Investments provides a detailed overview of the structure and use cases of their proposed Ethereum ETF. The Trust's unique structure ensures that each share represents a fractional and undivided beneficial stake in the overall net assets of the Trust. The assets in the Trust consist solely of ETH tokens governed by the appointed Custodian.

"Each Share will represent a fractional undivided beneficial interest in the Trust's net assets. The Trust's assets will consist of ETH held by the Custodian on behalf of the Trust. The Trust generally does not intend to hold cash or cash equivalents. However, there may be situations where the Trust will unexpectedly hold cash on a temporary basis," the filing stated.

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