Money Management giant Fidelity is looking to create an Exchange-Traded Fund (ETF) that owns Ethereum’s Ether (ETH). This was revealed by a Friday filing with the U.S. Securities and Exchange Commission (SEC). A rival firm, BlackRock, has also strengthened its embrace of cryptocurrency.
The proposed ETF would list the stock on Cboe Global Markets. To be approved, the SEC must first decide whether it will approve the Ether ETF.
In addition, BlackRock is also planning to create ETFs that give investors access to Bitcoin (BTC). However, the SEC has yet to comment on the matter.
If approved, ETFs that hold BTC or ETH – the two biggest cryptocurrencies – could revolutionize the crypto market. This is because they are easier to purchase than cryptocurrency itself. Through a normal brokerage account, investors can access a variety of ETFs that trade like stocks, and track assets such as the entire stock market, gold, corn, and sugar.
The potential influx of new investment money into digital assets – particularly with the marketing of well-known firms such as Fidelity and BlackRock – is an exciting prospect.