As a seasoned crypto investor with a keen interest in Ethereum and ETFs, I’m closely following the latest developments regarding Fidelity’s updated application for an Ethereum spot ETF. The recent amendments to their Form S-1 registration statement offer valuable insights into their approach.
Fidelity, a leading asset management company, has made more adjustments to its proposed Ethereum (ETH) spot exchange-traded fund (ETF) submission to the Securities and Exchange Commission (SEC). This action follows other applicants as they wait for SEC approval to initiate ETH ETF trading in the US market.
Fidelity Updates S-1 Form – What’s New?
On Friday, June 21, Fidelity made an amendment to its registration statement (Form S-1) with the Securities and Exchange Commission (SEC). This amendment was necessary to facilitate the public offering of an Ether exchange-traded fund (ETF).
Based on the most recent disclosure, FMR Capital, a branch of Fidelity, bought approximately 125,000 shares priced around $38 each to initiate their investment in funds, totaling roughly $4.7 million. The filing subsequently unveiled that the Trust obtained 1,250 Ether tokens through the utilization of these Seed Baskets’ gains.
I’ve obtained confirmation from Fidelity that they won’t be involved in Ethereum staking, contrary to earlier speculations in May. The official statement was made public in a filing.
The Trust chooses not to engage in the Ethereum network’s proof-of-stake process, which involves pledging ether as collateral to validate transactions and generate new ether (referred to as “staking” ether). Consequently, the Trust will not pursue this method to gain extra ether or explore alternative income sources from its existing ether holdings.
Significantly, Fidelity’s revised S-1 filing with the Securities and Exchange Commission did not disclose any information regarding fees. This omission has been typical of other exchange-traded fund (ETF) issuers during their application processes. According to Bloomberg ETF expert Eric Balchunas in a post on X, it is speculated that these issuers are holding off on announcing their fees until the very end or possibly following Blackrock’s lead.
Notably, BlackRock has made an update to its S-1 filing, revealing approximately $10 million as its initial investment in the fund. Yet, the financial details regarding fees for its Ethereum spot ETF remain undisclosed by the leading asset manager.
BlackRock has disclosed investing around $10 million without specifying any fees involved, as mentioned in their latest report. This investment is an addition to what was previously disclosed in their previous filing. Essentially, this marks the conclusion of the transaction from our end. The next steps now lie with the SEC.
— Eric Balchunas (@EricBalchunas) June 21, 2024
Analyst Double Down On ETF Launch Date
In a recent post on the X platform, Balchunas reaffirmed his prediction that Ethereum spot ETFs will debut in the US markets on July 2, 2024, based on current developments. (Or) Based on his latest post on the X platform, Balchunas maintains that the Ethereum spot ETFs are anticipated to start trading in the US by July 2, 2024, according to his assessment.
As a researcher, I anticipate that we will witness several amended S-1 filings being submitted today, likely in the late afternoon. Following this, it will be the SEC’s turn to communicate any final adjustments and grant effectiveness to these filings, which equates to their final approval. We remain steadfast in our prediction that the launch date for the ETFs related to Ethereum will fall on or before July 2nd.
— Eric Balchunas (@EricBalchunas) June 21, 2024
After the recent S-1 amendments, Balchunas indicated that the Securities and Exchange Commission (SEC) will need to determine their subsequent steps. He added, “It’s now the SEC’s responsibility to communicate any last-minute adjustments and grant effectiveness – essentially, giving final approval – to issuers.”
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2024-06-22 14:11