According to regulatory documents, global asset management giant Fidelity will inject $4.7 million in seed capital into its upcoming Ethereum ETF. This move not only provides initial liquidity for the new fund, but also reflects Fidelity’s confidence in the product.

Meanwhile, Fidelity’s S-1 registration document filed on Friday detailed the total proceeds from the sale of seed assets for the “Fidelity Ethereum Fund,” which amounted to $4,749,975.00.

Fidelity Ethereum ETF’s first seed funding

On June 4, Fidelity used the funds to purchase 1,250 Ethereum (ETH), with its subsidiary FMR Capital purchasing 125,000 shares at $38 per share. This purchase marks Fidelity's initial commitment to the Ethereum ETF, and compared with the $20 million seed funding it injected when launching the Bitcoin ETF in January, it shows Fidelity's continued commitment to the cryptocurrency ETF market.

Meanwhile, Fidelity’s main competitors BlackRock and Bitwise also announced seed funding for their Ethereum ETFs. Bitwise injected $2.5 million into its ETF and received a possible $100 million stock purchase intention from Pantera Capital Management. BlackRock injected $10 million in seed funding into its fund, which is equal to its initial investment in the Bitcoin fund.

Despite the large size of Fidelity's seed fund, the specific fund details have not yet been fully disclosed. However, Franklin Templeton has clearly announced the management fees of its Ethereum fund, which will be consistent with the company's Bitcoin product, setting the fee rate at 0.19%. This rate is the lowest among the currently known Bitcoin or Ethereum ETFs, and compared with VanEck's 0.2% management fee, Franklin Templeton provides a more economical option.

Market prospects of Ethereum ETF

Bloomberg ETF analyst Eric Balchunas predicts that the Ethereum ETF launch date could be July 2. He noted that other companies may wait for BlackRock to disclose more information before announcing their strategies.

Although analysts generally believe that the flow of Ethereum ETFs will not exceed that of Bitcoin, its performance is expected to exceed the average level of newly launched ETF products.

Balchunas previously predicted that Ethereum ETFs would attract 20% of Bitcoin ETF flows, while a report from K33 Research was even more optimistic, predicting that ETFs would bring 28% of gains to Bitcoin products to $4 billion within five months.

Meanwhile, back in March, Standard Chartered said that an Ethereum ETF would attract $45 billion in inflows within a year.

in conclusion

Fidelity's $4.7 million seed funding commitment, as well as the actions of other asset management companies, demonstrate the market's expectations and confidence in the Ethereum ETF. As the fee rate becomes clearer and the launch date approaches, the Ethereum ETF is expected to become an important supplement to the cryptocurrency ETF market, providing investors with more diversified choices. #以太坊ETF #富达 #Fidelity