Bitrabo Editorial
Fidelity has updated its application for an Ethereum (ETH) spot exchange-traded fund (ETF) with the Securities and Exchange Commission (SEC). This move signals the investment firm’s readiness to begin trading ETH ETFs in the United States pending SEC approval.
Key Updates in Fidelity’s S-1 Form
On June 21, Fidelity made amendments to its Form S-1 Registration Statement, a necessary step for registering the Ether exchange-trading fund for public sale.
In the recent filing, FMR Capital, an affiliate of Fidelity, purchased 125,000 shares at around $38 each, seeding the fund’s basket with $4.7 million. The filing also disclosed that the Trust acquired 1,250 Ether tokens using the funds from the Seed Baskets.
Fidelity clarified that it will not engage in Ethereum staking, contrary to earlier indications from late May. This decision was outlined in the filing, stating that the Trust will not stake its ether holdings for additional income purposes.
Unlike other ETF issuers, Fidelity did not mention any fees in its amended S-1 form. Bloomberg ETF expert Eric Balchunas pointed out that issuers may be awaiting BlackRock’s move before finalizing their fee structures.
BlackRock also updated its S-1 form, revealing a seed capital of approximately $10 million for its ETH spot ETF without disclosing any associated fees.
Analyst’s Insights on ETF Launch Date
In a recent post, Balchunas reiterated his prediction of July 2, 2024, as the expected launch date for Ethereum spot ETFs in the US. According to him, the recent S-1 amendments indicate no change in this anticipated launch date.
Following the latest round of S-1 filings, analysts are waiting for the SEC to make final decisions. Balchunas emphasized that the SEC plays a crucial role in determining any final changes and granting approval for the ETFs to commence trading.