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Fidelity seeks green light for Ethereum ETF, following BlackRock’s filing

Just days after BlackRock filed for the iShares Ethereum Trust, asset management firm Fidelity has submitted an application for its own Ethereum exchange-traded fund (ETF).

Fidelity, an asset management firm overseeing $4.5 trillion in assets, has become the latest firm to seek approval for a spot Ethereum (ETH) exchange-traded fund (ETF).

In a filing submitted to the United States Securities and Exchange Commission (SEC) on November 17, Fidelity proposes to list and trade shares of the Fidelity Ethereum Fund on the Cboe BZX Exchange.  

"According to the Registration Statement, each Share will represent a fractional undivided beneficial interest in the Trust’s net assets. The Trust’s assets will consist of ETH held by the Custodian on behalf of the Trust."

This comes after recent news that BlackRock officially filed for a spot Ether ETF, the iShares Ethereum Trust, with the SEC on Nov. 16.

BlackRock's filing comes nearly a week after it registered the iShares Ethereum Trust with Delaware’s Division of Corporations and almost six months after it filed its spot Bitcoin ETF application.

This is a developing story, and further information will be added as it becomes available.

Grayscale Investments Submits Revised Application for Spot Ethereum ETF

Less than 1% of staked ETH estimated to sell after Shanghai upgrade: Glassnode

The analytics firm backed up its prediction, stating only 253 validators have signed up to fully exit their staked Ether position.

An estimated 170,000 Ether (ETH) of the total 18.1 million ETH staked on the Beacon Chain will be unlocked within the first week of the Shanghai hard fork being executed on Ethereum, Glassnode has predicted.

The figure will comprise 100,000 Ether ($190 million) staking rewards and 70,000 ETH in staked Ether ($133 million) hitting the market the on-chain intelligence platform predicted in its April 11 report.

Glassnode backed up its prediction by explaining that only 253 depositors are waiting to exit their stake and that a few mechanisms are in place to prevent a flood of Ether supply from hitting the market all at once.

The 253 exiting depositors own a total of 1,229 validators, while another 214 slashed validators will be forced out as soon as Shanghai is activated on Ethereum with Glassnode confident the hard fork will not have a "dramatic" impact on Ether's price action:

“Even in the extreme case where the maximum amount of rewards and stake are withdrawn and sold, the sell-side volume still falls within the range of the average weekly exchange inflow volume.”

“Therefore, we conclude that even the most extreme case will have an acceptable impact on the price of ETH,” the firm added.

Data shared by Glassnode found that only 22% of the 253 exiting depositors are currently in profit too.

The types of organizations, size, age and profitability of each of the 253 exiting Ethereum validators. Source: Glassnode

Glassnode expects a large amount of Ether to be withdrawn from the crypto exchange Kraken after the legality of its staking services was challenged by the United States Securities and Exchange Commission (SEC).

It also anticipated that crypto lending platform Celsius may withdraw a large amount to sell its staked Ether as part of its bankruptcy proceedings.

However, it is unlikely that Kraken and Celsius will make these withdrawals as soon as Shanghai is activated, it said.

Approximately 11.2% of the Ether staked on the Beacon Chain is operated by Kraken’s staking service. Source: Glassnode

The average deposit price across all staked ETH is $2,136, down 12.7% from Ether’s current price of $1,865, which equates to a net unrealized loss of $4.7 billion, Glassnode said:

“After the peak unrealized loss of $16B in July 2022, the net unrealized loss now amounts to $4.7B. It is mainly carried by the Whale sized depositors, who hold a 76% share of the unrealized losses.”

Global financial firm Fidelity Investments is also of the view that Shanghai won’t have too much of an impact on Ether's price action.

Related: Ethereum price turns bullish ahead of next week’s Shanghai and Capella upgrades

It explained in an April 5 report that “selling pressure will be muted due to the likelihood of partial withdrawals being re-staked as well as the length of time the withdrawals will take.”

The Shanghai upgrade is set to take effect on April 12, 10:30 pm UTC according to blockchain infrastructure firm Blocknative.

The unlocking of staked Ether will be enabled by Ethereum Improvement Proposal-4895.

Of the five EIPs that will be activated by Shanghai, it is by far the most anticipated one as it will move Ethereum one step closer to a fully functional proof-of-stake system.

Magazine: ‘Account abstraction’ supercharges Ethereum wallets: Dummies guide

Grayscale Investments Submits Revised Application for Spot Ethereum ETF

$4,500,000,000,000 Asset Manager Fidelity Hiring for ‘Crypto Token Research’ Position

,500,000,000,000 Asset Manager Fidelity Hiring for ‘Crypto Token Research’ Position

Fidelity Investments is searching for a crypto and token research development lead to join its quantitative research and investments technology team. The move may be a sign that the financial giant is looking to expand its crypto investment offerings beyond Bitcoin (BTC) and Ethereum (ETH). According to the firm, the new hire will lead a […]

The post $4,500,000,000,000 Asset Manager Fidelity Hiring for ‘Crypto Token Research’ Position appeared first on The Daily Hodl.

Grayscale Investments Submits Revised Application for Spot Ethereum ETF

Financial Giant Fidelity Files Trademarks for Crypto, NFT, and Metaverse Products

Financial Giant Fidelity Files Trademarks for Crypto, NFT, and Metaverse ProductsFidelity Investments, a major financial services firm with $10 trillion in assets under administration, has filed several trademark applications for a wide range of cryptocurrency, non-fungible token (NFT), and metaverse products and services. Fidelity’s Crypto and Metaverse Trademark Applications Fidelity Investments filed three trademark applications with the United States Patent and Trademark Office (USPTO) last […]

Grayscale Investments Submits Revised Application for Spot Ethereum ETF

Fidelity plans NFT marketplace and financial services in the metaverse

Newly filed trademark applications outline a long list of possible avenues for the firm in the metaverse.

Investment giant Fidelity Investments has filed trademark applications in the United States for a host of Web3 products and services, including a nonfungible token (NFT) marketplace and financial investment and crypto trading services in the metaverse.

This is according to three trademark filings submitted to the United States Patent Trademark Office (USPTO) on Dec. 21, which was highlighted by licensed trademark attorney Mike Kondoudis in a Dec. 27 tweet.

One of the key areas of the firm’s focus appears to be the metaverse, with Fidelity indicating that it could offer a wide range of investment services within virtual worlds including mutual funds, retirement funds, investment management and financial planning.

It also appears that metaverse-based payment services could be in the works, including electronic bill payments, fund transfers and the “financial administration of credit card accounts in the metaverse and other virtual worlds.”

In terms of crypto, the filings indicate that the firm could launch trading and management services in the metaverse, along with providing virtual currency wallet services.

“Electronic wallet services in the nature of electronic storage and processing of virtual currency for electronic payments and transactions via a global computer network; digital currency, virtual currency, cryptocurrency digital token,” the filing reads.

Fidelity Investments Trademark filing: USPTO

Additionally, Fidelity outlines that it could offer educational services in the metaverse in the form of “conducting classes, workshops, seminars and conferences in the field of investments and in the field of marketing financial services.”

“Providing business information to financial service providers by means of an internet web site, in the field of business marketing in the metaverse and other virtual worlds; referral services in the field of investment advice and financial planning in the metaverse and other virtual worlds” one filing reads.

NFTs are also in Fidelity's plans, with the investment manager stating that it could launch an “online marketplace for buyers and sellers of digital media, namely, non-fungible tokens,” however further details on such are sparse.

Related: Current infrastructure can't support the metaverse, says Huawei report

The latest filings from Fidelity show that the firm has not been spooked by the intense bear market in 2022 and recent FTX implosion, and is instead looking to increase its exposure and offerings in Web3.

The firm essentially outlined as such and called for stronger regulation when responding to a Nov. 21 letter from crypto-hating senators Elizabeth Warren, Tina Smith and Richard Durbin, which had called on Fidelity to reconsider its Bitcoin (BTC) retirement products due to the “volatile, tumultuous and chaotic” nature of crypto assets.

A Fidelity spokesperson told Cointelegraph at the time that the company "has always prioritized operational excellence and customer protection" and noted that "recent events" in the crypto industry have only "underscored the importance of standards and safeguards."

It is also worth noting that back in October, Fidelity was reportedly looking to beef up its crypto unit by hiring 100 new staff members, a stark contrast to a number of crypto firms that have laid off a significant amount of employees this year.

Grayscale Investments Submits Revised Application for Spot Ethereum ETF

Fidelity to beef up crypto unit by another 25% with 100 new hires

The Digital Assets division within Fidelity Investments will have around 500 total staff members by the first quarter of 2023, according to a spokesperson.

$4.5 trillion asset management firm Fidelity Investments is reportedly set to hire another 100 people to bolster the firm's growing digital assets division — a stark contrast to the recent squeezing out of crypto-talent. 

A Fidelity representative told Bloomberg on Oct. 22 that the firm has begun a new round of hiring which will bring the Fidelity Digital Asset’s headcount to around 500 by the end of the first quarter of 2023.

A search on Fidelity’s job board currently shows 74 live results for digital asset-related positions, which cover areas relating to blockchain technology, business analysis, customer service, finance and accounting, product development, and corporate services including compliance. 

Almost all of the current listings are based in the United States — with the majority coming from its Boston headquarters, New York, Texas Colorado and Utah.

The spokesperson told Bloomberg that the new roles would be situated throughout the U.S., U.K. and Ireland.

Fidelity’s hiring spree comes as BlockFi, Coinbase, Gemini and Crypto.com were among some of the largest crypto-native firms to lay off a spree of employees, having cut 20%, 18%, and 10% respectively.

The large layoffs appear to have opened a fresh supply of crypto talent for traditional firms like Fidelity to take on board.

Related: Fidelity’s crypto ambitions are bigger than expected: report

The digital asset team expansion should be of little surprise given how gung-ho Fidelity has been to offer more comprehensive digital asset-related services amid growing investor interest.

A Fidelity spokesperson recently confirmed to Cointelegraph that they will be offering ETH custody and trading services to its institutional clients from Oct. 28, 2022.

In September, industry participants hinted the firm may soon “shift” into offering Bitcoin trading services to its 34 million retail customers.

The firm did not confirm the speculation at the time, only noting that “expanding our offerings to enable broader access to digital assets remains an area of focus.”

The firm has already launched a service that enables its 401(k) retirement saving account holders to invest directly into Bitcoin (BTC).

Cointelegraph reached out to Fidelity in regard to the firm's expansion plans but did not receive an immediate response.

Grayscale Investments Submits Revised Application for Spot Ethereum ETF

Fidelity’s Crypto Platform Prepares to Start Offering Ethereum Trading Next Week

Fidelity’s Crypto Platform Prepares to Start Offering Ethereum Trading Next WeekFidelity Digital Assets, a subsidiary of Fidelity Investments, has informed customers that it will start offering ethereum trading and custody services on Oct. 28. “Investors will be able to buy, sell, and transfer ether, accessing the same operational excellence, robust security, and dedicated client service model provided for bitcoin investments today,” the firm said. Institutional […]

Grayscale Investments Submits Revised Application for Spot Ethereum ETF

$4.5T asset manager Fidelity offers ETH custody and trading to clients

According to an email reportedly sent to clients, Fidelity Digital Assets is offering institutional Ethereum capabilities for their clients starting next week.

Fidelity Digital Assets, the crypto wing of $4.5 trillion asset manager Fidelity Investments, is set to offer Ether (ETH) custody and trading services to its institutional clients later this month. 

According to an email to Fidelity’s customers shared on Twitter, the crypto arm announced new “Institutional Ethereum capabilities” for institutional investors starting on Oct. 28, 2022.

The post states that investors will be able to buy, sell and transfer ETH, “using the same model provided for bitcoin investments today.”

“With the Ethereum Merge completed, many investors are looking at Ethereum through a new lens,” said Fidelity, likely referring to Ethereum’s shift to the environmentally-friendly proof-of-stake (PoS) model.

Fidelity has been a long supporter of cryptocurrencies such as Bitcoin (BTC), outlining in a past paper their belief that it’s a superior form of money rather than just tech.

This latest announcement comes in the wake of a new Ethereum Index Fund, which has raised over $5 million since the first sale on Sept. 26 through a sole investor, according to an Oct. 4 filing.

Related: Fidelity will ‘shift’ retail customers into crypto soon — Galaxy CEO

In April, Fidelity announced plans to allow 401(k) retirement saving account holders to directly invest in Bitcoin.

While last year, the company announced that 90% of its biggest clients were interested in accessing Bitcoin and other cryptocurrencies.

On Sept. 13, Galaxy Digital CEO Mike Novogratz said that Fidelity was reportedly working toward offering Bitcoin to its 34.4 million retail investor base.

Cointelegraph reached out to Fidelity regarding the new service but has not received an immediate response at the time of publication.

Grayscale Investments Submits Revised Application for Spot Ethereum ETF

Financial Heavyweights Citadel, Charles Schwab, Fidelity Confirm Cryptocurrency Exchange Launch

Financial Heavyweights Citadel, Charles Schwab, Fidelity Confirm Cryptocurrency Exchange LaunchA number of financial giants including Fidelity Investments, Citadel Securities, and Charles Schwab Corp. announced on Tuesday that the consortium of companies plans to launch a cryptocurrency exchange called EDX Markets. Reports note that firms like Paradigm, Sequoia Capital, and Virtu Financial are also backing the new crypto trading platform. The story was first reported […]

Grayscale Investments Submits Revised Application for Spot Ethereum ETF