Asset management firm Fidelity has made further changes to its application to create an Ethereum (ETH) spot ETF. The move comes as the investment giant and other applicants await the green lightweight from the Securities and Exchange Commission (SEC) to begin trading ETFs in the United States.
Fidelity Update Form S-1 – what’s fresh?
On Friday, June 21, Fidelity amended its registration statement on Form S-1 with the SEC. This Form S-1 is required to register your Ether exchange-traded fund for sale to the public.
According to the latest sawing, FMR Capital, an affiliate of Fidelity, acquired 125,000 shares at a price of approximately $38, adding $4.7 million to the fund’s basket. The filing then revealed that the Trust had acquired 1,250 Ether tokens using proceeds from Seed Baskets.
Additionally, Fidelity has confirmed that it will not participate in Ethereum staking, as originally revealed in slow May. The filling was:
The Trust will not participate in the Ethereum network’s proof-of-stake validation mechanism (i.e., the Trust will not “stake” its Ether) in order to obtain additional Ether or seek other ways to generate income from its Ether holdings.
Notably, Fidelity’s amended Form S-1 still made no mention of fees, a common feature among other ETF issuers. Bloomberg ETF expert Eric Balchunas discussed the fee situation in a post on X, saying issuers are likely waiting until the last minute or for Blackrock to decide on their fees.
It’s worth mentioning that BlackRock also updated its Form S-1, reporting seed capital of approximately $10 million. However, the asset management giant did not disclose any fees for its ETH spot ETF.
BlackRock is participating… no fee has been paid, but they have reported a $10 million exposure (although I think this may have already been known in a previous filing). Anyway, that’s basically the summary. The ball is already in the SEC court. pic.twitter.com/nbYoJo8Xj4
— Eric Balchunas (@EricBalchunas) June 21, 2024
The analyst doubled in value on the day the ETF launched
In another post on X, Balchunas revealed that nothing significant has happened that could change his prediction for the launch date of spot Ethereum ETFs. According to a Bloomberg expert, the expected date of commencement of trading in these funds in the United States is July 2, 2024.
Next step: We will file some amended S-1s this afternoon, likely later. It is then up to the SEC to inform issuers of any final changes and effectiveness (called final approval). We hold the line with July 2 as the release date for the over/under ETFs. https://t.co/EmqCVsE0Qe
— Eric Balchunas (@EricBalchunas) June 21, 2024
Balchunas mentioned that after the latest round of S-1 amendments, the SEC will have to decide on its next course of action. “Then the ball is in the SEC’s court to inform issuers of any final changes and effectiveness (called final approval),” the ETF analyst said.
ETH price thickens around $3,500 on the daily timeframe | ETHUSDT chart on TradingView
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