Asset management company Fidelity has made further modifications to its application for an ethereum (eth) spot exchange-traded fund (ETF). This move comes as the investing giant and other applicants wait for the green light from the Securities and Exchange Commission (SEC) to begin trading eth ETFs in the United States.
Fidelity Updates Form S-1: What's New?
On Friday, June 21, Fidelity amended its Form S-1 Registration Statement with the SEC. This Form S-1 is required to register the Ether exchange trading fund for public sale.
According to the latest presentation, FMR Capital, an affiliate of Fidelity, bought 125,000 shares at a price of about $38 to seed the fund basket with $4.7 million. The presentation then revealed that the Trust acquired 1,250 Ether tokens using the proceeds from the Seed Baskets.
Additionally, Fidelity confirmed that it will not participate in the ethereum bet, as initially revealed in late May. The filler said:
The Trust will not participate in the ethereum network's proof-of-stake validation mechanism (i.e., the Trust will not “stake” its ether) to earn additional ether or seek other means of generating income from its ether holdings.
Notably, there is still no mention of fees in Fidelity's amended S-1 form, which has been a common feature in the other ETF issuers' filing. Bloomberg ETF expert Eric Balchunas analyzed the fee situation in a post on x, saying that issuers are likely waiting until the last minute or at Blackrock before deciding their fees.
It is worth mentioning that BlackRock has also updated its S-1 form, reporting initial capital of around $10 million. However, the asset management giant did not disclose any fees on its eth spot ETF.
<blockquote class="twitter-tweet” data-width=”500″ data-dnt=”true”>
BlackRock is included… no fee has been released, but they did report seeding with $10 million (although I think that may have already been known in the previous filing). Anyway, that's basically a summary. The ball is now in the SEC's court. pic.twitter.com/nbYoJo8Xj4
– Eric Balchunas (@EricBalchunas) twitter.com/EricBalchunas/status/1804255060546760761?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>June 21, 2024
Analyst doubles down on ETF launch date
In another post on Platform x, Balchunas revealed that nothing significant has happened to change his prediction on the launch date of ethereum spot ETFs. According to the Bloomberg expert, July 2, 2024 is still the scheduled date for these funds to begin trading in the United States.
<blockquote class="twitter-tweet”>
Next up: We'll see a bunch of amended S-1s filed today, probably later this afternoon. The ball is then in the SEC's court to inform issuers of any final changes and their effectiveness (also known as final approval). We are holding the line with July 2 as our eth ETF launch date. https://t.co/EmqCVsE0Qe
– Eric Balchunas (@EricBalchunas) twitter.com/EricBalchunas/status/1804169534565138803?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>June 21, 2024
Balchunas mentioned that after the latest round of amendments to S-1, the SEC will have to decide the next course of action. “So the ball is in the SEC's court to inform issuers of any final changes and their effectiveness (aka final approval),” the ETF analyst said.
x/zSB4ls1y/” alt=”Fidelity” width=”1832″ height=”1314″/>
eth price thickens around $3,500 on the daily timeframe | ETHUSDT chart on x/zSB4ls1y/" target="_blank" rel="noopener nofollow">TradingView
Featured image from iStock, chart from TradingView
<script async src="//platform.twitter.com/widgets.js” charset=”utf-8″>
