SEC requests feedback on Fidelity’s proposed Ethereum ETF, indicating a possible change in U.S. regulations pertaining to the cryptocurrency sector.
The United States Securities and Exchange Commission (SEC) has opened public comments on a proposed rule change, which is a big step for the cryptocurrency industry.
This modification may enable the large asset management company to offer shares of Fidelity Investments’ spot Ethereum (ETH) exchange-traded fund (ETF). An important step toward incorporating Bitcoins into traditional financial products is this idea.
In a notice published on November 30, the SEC asks “interested persons” to comment on Fidelity’s plan. This comes after Fidelity applied on November 17th for the ETF, with the goal of listing and allowing trading of its Fidelity Ethereum Fund shares on the Cboe BZX Exchange.
Fidelity’s action fits into a larger pattern among asset management companies looking to introduce cryptocurrency Exchange-Traded Funds (ETFs) in the United States.
The SEC’s decision to request public input has reached an important phase in the regulatory process. It displays how cryptocurrencies are becoming more and more popular as financial assets, as well as how regulators may accept them.
Public members can provide feedback for 21 days, beginning on the day the Federal Register is published.
ETH ETF Spot Could Guard Investors
The Fidelity petition draws attention to the U.S. market’s lack of exchange-traded, regulated cryptocurrency products. Exchange-traded products allow investors in Germany, Switzerland, and France to purchase Ether.
However, the U.S. market has yet to keep up with the opportunities available to investors in these other nations. According to Fidelity, American investors have fewer and riskier options for investing in Ethereum because there isn’t an exchange-traded, government-regulated Ether product in the country.
