Exploring Web 3.0 Opportunities: SEC Seeks Comments on Fidelity’s Spot Ether ETF Application

Web 3.0 Adoption and Exchange-Traded Fund

The U.S. Securities and Exchange Commission (SEC) has requested public comments on a proposed rule change that could allow asset management firm Fidelity to offer shares of its spot Ether (ETH) exchange-traded fund (ETF).

On Nov. 30, the SEC said that “interested persons” may comment on the Fidelity offering, proposing the Cboe BZX Exchange list and trade shares of its Fidelity Ethereum Fund. Fidelity first filed for approval of the fund on Nov. 17, joining many other firms looking to enter the U.S. crypto ETF space.

The filing noted that investors in other countries, including Germany, Switzerland, and France, have access to Ether through exchanges offering exchange-traded products. However, U.S. investors “are left with fewer and more risky means of getting ether exposure,” according to the filing. The lack of an ETF for spot ETH “exposes U.S. investor assets to significant risk,” as investors seeking crypto asset exposure are forced to find alternative exposure through riskier means.

The SEC’s notice has opened the door for public comments on Fidelity’s proposed ETF, offering U.S. investors the opportunity to gain exposure to Web 3.0 coins like Ether through a U.S. regulated, U.S. exchange-traded vehicle. Members of the public will have 21 days to submit comments upon publication of the filing in the Federal Register.

Web 3.0 Adoption and List of Tools

Many reports and experts have suggested that the SEC could be nearing a decision on a spot crypto ETF for listing on U.S. markets. This could potentially be one of the most significant positive trends toward mainstream crypto adoption if approved. At the time of writing, however, the commission had not given the green light to any spot Bitcoin or Ether investment vehicle.

The filing added: Web 3.0, also known as the Metaverse, is a decentralized platform that is set to revolutionize the way digital information is shared and stored. It is an open-source platform that enables users to create and share data, applications, and digital assets. There are many web 3.0 tools and websites available, including web 3.0 browsers, web 3.0 coins, and web 3.0 business opportunities. In October 2021, exchanges began listing and trading shares of ETFs tied to Bitcoin (BTC) futures, and in October 2023, nine Ether futures ETFs were debuted.