Fidelity Investments’ U.S. spot Ethereum exchange-traded fund (ETF) may have just been added to the Depository Trust and Clearing Corporation’s (DTCC) list of ETFs. The ETF, officially named Fidelity Ethereum FD Beneficial INT, is listed under the ticker symbol FETH. However, it is yet to commence trading as of publication.
The DTCC, a key securities clearing corporation, noted that FETH is designated as a domestic fund. It also marked FETH as “N” in the create/redeem column. This symbolizes its inactive status, meaning that the ETF will not be fully operational until it gets the necessary regulatory approvals. The DTCC stated on its website:
“This file includes both active ETFs that may be processed at DTCC and ETFs that are not yet active (“pre launch”) and, therefore, are not able to be processed at DTCC, unless and until such securities have received all necessary regulatory and other approvals.”
Meanwhile, FETH is not alone in the listing on DTCC. The fund joins a host of other spot Ether ETFs to do so. Alongside Fidelity’s ETF, proposed spot Ether ETFs from VanEck, Franklin Templeton, and BlackRock have also been added to the DTCC’s list.
Fidelity’s Spot Ether ETF Hits Milestone, But Regulatory Hurdles Remain
Despite the implications and potential of these listings, the DTCC has clarified that such listings are merely part of its standard practice. That is, they do not necessarily mean that regulatory approval will be automatically earned.
Last week, the U.S. Securities and Exchange Commission (SEC) granted preliminary approval for eight 19b-4 forms related to spot Ether ETFs. That was shortly after lawmakers pushed for a quick and decisive approval. The approvals were for major financial firms, including BlackRock, Fidelity, Grayscale, Bitwise, VanEck, Ark Invest, Invesco Galaxy, and Franklin Templeton. Nevertheless, the firms still need to have their S-1 registration statements approved by the SEC to officially launch their ETFs.
Notably, Fidelity has already taken steps in this direction by filing its amended S-1 form last week. BlackRock also followed suit with its own amended registration statement on Wednesday.
Interestingly, the progress of these filings and the subsequent regulatory reviews will mean a lot to the financial community. For one, the successful launch of these ETFs would open up wider access to Ethereum investments. More so, it will provide a more regulated and mainstream avenue for both retail and institutional investors.
It remains to be seen what the next steps of the SEC will be. However, as the commission continues its evaluations, the financial world holds its breath to see what will become of spot Ether ETFs.
