Following the SEC’s endorsement of the 19b-4 forms, the gradual progression toward listing funds on exchanges has begun. One of the major steps is to have listings at Depository Trust and Clearing Corporation (DTCC) such as Fidelity’s Ether spot ETF alongside BlackRock, VanEck, and Franklin Templeton products.
Fidelity’s Significant Listing
Fidelity which is one of the greatest fund management companies in the U.S, has had its Ether spot ETF listed on the DTCC. This listing implies that the fund will soon be available in stock markets. DTCC is famous for providing custody as well as clearance services for exchanges. However, this listing does not mean that the fund is already in a position to trade automatically. The ETF is known as “Fidelity Ethereum FD Beneficial INT” and abbreviated as “FETH” but is still inactive.
Regulatory Approvals Still Required
DTCC pointed out that approval from the SEC was very important before confirming the listings for active and inactive ETFs. The SEC must approve the S-1 filing after completing a comprehensive listing process that includes 19b-4 forms and other requirements. The filing allows trading on exchanges under the same fund name following approval of S-1 in addition to 19b-4 forms having already been approved. S-1 filing signifies that a company has obtained lawful authorization for conducting an initial public offering transaction (IPO).
Progress from Other Major Firms
The DTCC has so far also listed Ether spot ETFs founded by BlackRock, VanEck, and Franklin Templeton. However, this listing from the DTCC does not imply that trading begins immediately on the exchanges. Full operation of these funds awaits the SEC’s final approval. On the other hand, the process of regulatory approval can be extensive and intricate unlike the easy listing process; for example, Fidelity updated its S-1 filing last week following the SEC’s request, whereas BlackRock made similar updates in theirs.
Implications for the Market
Fluctuating interest rates and increasing implementation measures point to the future creation of Spot ETFs for Ether. The participation of key institutional players, in particular Fidelity and BlackRock, implies considerable investor appetite and trust remains strong. Despite these promising signals, getting the final nod from the SEC is another phase altogether. Until there are all regulatory nods for these devices to start trading from scratch and maybe change the financial landscape….
When using the DTCC listing milestone as a point of reference; we find that despite being a major step forward it is important to keep in mind just how much more time will need to elapse before pure-Ether ETFs become tradable (https://talkingcapitalism.jkf.go.bo/). Market players must therefore wait with bated breath for what could be the SEC’s final word on this issue.
