Asset management firm Fidelity has made further amendments to its application for an Ethereum (ETH) spot exchange-traded fund (ETF). This move comes as the investment giant and other applicants await the green light from the Securities and Exchange Commission (SEC) to commence ETH ETF trading in the United States.
Fidelity Updates S-1 Form – What’s New?
On Friday, June 21, Fidelity amended its Form S-1 Registration Statement with the SEC. This S-1 form is required to register the Ether exchange-trading fund for public sale.
According to the latest filing, FMR Capital, an affiliate of Fidelity, purchased 125,000 shares at a price of around $38 to seed the funds’ basket with $4.7 million. The filing then revealed that the Trust acquired 1,250 Ether tokens using the proceeds of the Seed Baskets.
Furthermore, Fidelity confirmed that it will not participate in Ethereum staking, as initially revealed in late May. The filling read:
The Trust will not participate in the proof-of-stake validation mechanism of the Ethereum network (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 was still no mention of fees in Fidelity’s amended S-1 form, which has been a common feature in the application of the other ETF issuers. Bloomberg ETF expert Eric Balchunas discussed the fee situation in a post on X, saying it is likely the issuers are waiting till the last minute or on Blackrock before deciding their fees.
It is worth mentioning that BlackRock has also updated its S-1 form, reporting a seed capital of around $10 million. However, the asset management behemoth did not disclose any fees on its ETH spot ETF.
BlackRock is in.. no fee posted but they did report seeding with $10m (altho I think that may have been known already in prev filing). Anyway that’s basically a wrap. Ball in SEC’s court now. pic.twitter.com/nbYoJo8Xj4
— Eric Balchunas (@EricBalchunas) June 21, 2024
Analyst Double Down On ETF Launch Date
In another post on the X platform, Balchunas revealed nothing significant has occurred to change his prediction on the launch date of the Ethereum spot ETFs. According to the Bloomberg expert, July 2, 2024, remains the expected date for these funds to begin trading in the United States.
Next step: we will see a bunch of amended S-1s filed today, prob later this afternoon. Then ball’s in SEC’s court to let issuers know about any final changes and effectiveness (aka final approval). We holding the line with July 2nd as our over/under for eth ETFs launch date. https://t.co/EmqCVsE0Qe
— Eric Balchunas (@EricBalchunas) June 21, 2024
Balchunas mentioned that following the latest round of S-1 amendments, the SEC will have to decide the next course of action. “Then the ball’s in SEC’s court to let issuers know about any final changes and effectiveness (aka final approval),” the ETF analyst said.
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