Last Updated on November 18, 2023 by Bitfinsider

Another competition between Fidelity and BlackRock for a Bitcoin ETF space could fundamentally alter US cryptocurrency investing.

As of November 17, Fidelity is the most recent financial behemoth to submit an application for an Ethereum exchange-traded fund. This information was filed with the Securities and Exchange Commission. The submission, made by Cboe BZX, detailed a suggested regulation modification that would enable it to list and trade shares of the upcoming ETF from Fidelity. The plan is quite similar to Fidelity’s June Securities and Exchange Commission-submitted spot Bitcoin ETF proposal.

The exchange that would list the Fidelity Ethereum Fund is owned by Cboe Global Markets. The Ethereum ETF needs to be approved by the US Securities and Exchange Commission, though. Other proposals, like the one from financial giant BlackRock that was made public earlier this month, still need to be approved. BlackRock applied for a spot Bitcoin ETF back in June, but only a few days ago, on November 15, it filed an S-1 application for its spot Ethereum ETF.

Not just Fidelity and BlackRock have submitted applications for spot Ethereum and spot Bitcoin exchange-traded funds (ETFs). The Securities and Exchange Commission is considering approving Bitcoin and Ethereum EFTs, and a number of other asset managers and financial institutions are competing for the same slot. By January 10th, 2024, the SEC is expected to decide whether to approve or reject a Bitcoin ETF. The ruling relates to ARK Invest’s spot Bitcoin application, which was filed in May. This occurred one month prior to BlackRock submitting its own Bitcoin ETF application.

Any ruling made on the ARK Invest Bitcoin ETF application may also be applied by the SEC to other applications that are still pending. These applications are deliberately designed to be similar to each other in order to satisfy anticipated needs. Although applications for spot Ethereum ETFs and spot Bitcoin ETFs will be assessed by the Securities and Exchange Commission independently, the approval of one could lead to the approval of the other.

It’s also worth noting that the Securities and Exchange Commission has approved spot futures ETFs for both Bitcoin and Ethereum, even though no spot ETFs for either have been approved as of yet.

To make cryptocurrency like Bitcoin and Ether easily accessible to investors, Fidelity and BlackRock intend to develop exchange-traded funds (ETFs). ETFs that own Ethereum or Bitcoin may have a big impact on the cryptocurrency market. Purchasing them would be simpler than purchasing cryptocurrency because all ETFs could be accessed by investors through any traditional brokerage. These exchange-traded funds (ETFs) monitor equities, gold, sugar, corn, and the whole stock market. They trade similarly to stocks. Theoretically, ETFs may attract a large influx of capital to digital assets.