Breaking News: Fidelity Makes Further Changes to ETH ETF Application
Asset management firm Fidelity has recently updated its S-1 form in preparation for an Ethereum spot exchange-traded fund (ETF). This move by Fidelity, alongside other applicants, is pending approval from the Securities and Exchange Commission (SEC) to kickstart ETH ETF trading in the US.
Fidelity’s Latest S-1 Amendments
On June 21, Fidelity revised its Form S-1 Registration Statement submitted to the SEC. This form is crucial for registering the Ether exchange-trading fund for public trading. In the recent filing, FMR Capital, a Fidelity affiliate, acquired 125,000 shares, valued at approximately $38, to initiate the funds’ basket with $4.7 million. Following this, the Trust purchased 1,250 Ether tokens utilizing the Seed Baskets’ proceeds.
- Fidelity updates its S-1 Registration Statement with the SEC for the ETH ETF.
- FMR Capital buys 125,000 shares to seed funds with $4.7 million.
- The Trust acquires 1,250 Ether tokens from Seed Baskets.
Moreover, Fidelity clarified that it would not partake in Ethereum staking, a detail previously disclosed in May. The filing specified that the Trust would abstain from engaging in proof-of-stake validation on the Ethereum network to generate income from its Ether holdings.
- Fidelity confirms it will not participate in Ethereum staking.
- The Trust will not partake in the proof-of-stake mechanism to earn extra Ether.
Interestingly, Fidelity’s updated S-1 form did not mention any fees, unlike other ETF issuers. Eric Balchunas, an expert from Bloomberg, pointed out that issuers might wait until the last minute or Blackrock’s decision before setting their fees. BlackRock, another significant player, reported a seed capital of approximately $10 million in its revised S-1 form without disclosing any fees for its ETH spot ETF.
- No mention of fees in Fidelity’s amended S-1 form.
- BlackRock updates S-1 form with a seed capital of $10 million.
Market Analysis on ETF Launch Date
Balchunas reiterated that his prediction on the launch date of Ethereum spot ETFs remains unchanged. He expects these funds to initiate trading in the US on July 2, 2024, as per his previous forecast. Following the latest S-1 amendments, the SEC now holds the responsibility to make the final call on the ETFs.
- Balchunas maintains July 2 as the anticipated launch date for ETH ETFs.
- The SEC awaits final changes and approval for the ETFs.
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