Fidelity Moves Forward with Ethereum ETF Plan Amid Regulatory Uncertainty

Fidelity Investments is advancing its effort to launch a spot Ethereum (ETH) ETF, despite uncertainty over regulatory approval timelines. The project was initially revealed in November when Cboe, intended for the ETF’s trading, filed with the SEC on behalf of Fidelity.

The firm has now made another significant move by filing a Form S-1 registration statement, pushing closer to launching the Fidelity Ethereum Fund.

For the ETF to begin trading, it must receive the SEC's green light, but Fidelity's latest filing omits the product's ticker symbol and fees. The document does detail plans for staking a portion of its assets to earn ether rewards, with Fidelity Digital Asset Services ensuring the security of the staked ether's private keys.

Fidelity's move towards a spot ether ETF comes after the SEC's approval of spot Bitcoin (BTC) funds. The SEC's decision on ETFs that directly hold ETH is awaited by late May.

Following the SEC's green light for ether futures ETFs in October, the industry is split on when spot ETH ETFs might get the nod. SkyBridge Capital’s Anthony Scaramucci predicts SEC delays, while Gemini’s Marshall Beard anticipates a six to nine-month wait for approval, suggesting staking features may not be included in the first versions.

The pursuit of a spot ether ETF by Fidelity and other entities aligns with the ongoing interest in spot bitcoin ETFs, which have attracted about $11.7 billion in net inflows since their inception.

The addition of Hashdex’s bitcoin futures fund, now also cleared to directly hold BTC, underscores the growing investor appetite for cryptocurrency investment avenues.