Title: Fidelity Files S-1 Application for Spot Ether ETF with SEC
Subheading: Fidelity Digital Asset Services to Serve as Custodian for Trust’s ETH
Fidelity, a leading asset management giant, has filed an S-1 application with the United States Securities and Exchange Commission (SEC) to create a spot Ether (ETHUSD) exchange-traded fund (ETF). The ETF, which would trade on the Cboe BZX Exchange, will give Fidelity the option to stake part of the ETH it holds.
According to the S-1 filing, Fidelity Digital Asset Services, affiliated with sponsor FD Funds Management, will serve as custodian of the trust’s ETH. The trust intends to establish a program to stake a portion of its assets through one or more staking infrastructure providers. However, this decision comes with additional risks, including the possibility of loss, liquidity risks, and taxable staking rewards.
The application does not specify the expected fees for the ETF, and in case of a fork, the custodian will determine which chain the fund will support. Additionally, there are various other risks associated with the ETF, such as regulatory measures that could negatively impact the fund.
The SEC’s investigation into the Ethereum Foundation could potentially impact the approval of a spot ETH ETF, and there has been political opposition to such ETFs. Despite these challenges, Fidelity remains committed to launching the ETF and providing investors with exposure to the growing cryptocurrency market.
