Fidelity Amends Application for ETH ETF

YEREVAN (CoinChapter.com) — Fidelity has amended an application for a spot Ether (ETH) exchange-traded fund (ETF). In a June 21 filing with the U.S. Securities and Exchange Commission (SEC), the company disclosed key details about the fund’s setup.

Fidelity’s $4.7M Ether ETF Seed Investment. Source: Satoshi Stacker Major Move: $4.7M Seed Capital

Fidelity revealed that FMR Capital, an affiliate, invested $4.7 million to seed the fund. This money was used to purchase 1,250 ETH, with each share costing $38. This update is part of Fidelity’s amended Form S-1 Registration Statement, a necessary step to register investments for public sale.

Fidelity’s amended application follows the SEC’s approval for the listing and trading of eight spot Ether ETFs from major asset managers, including VanEck, BlackRock, and Grayscale.

Fidelity’s Ether ETF Progresses Without Staking; SEC Approval Pending

Fidelity confirmed it will not engage in ETH staking. The filing states,

“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.”

This aligns with an amendment made a month ago, showing Fidelity’s focus on holding Ether without staking.

The SEC’s approval of the rule change allowing the listing and trading of these ETFs is a significant step. However, the ETFs still need the SEC’s final approval of their S-1 forms before trading can start.

Fidelity Ethereum Fund Prospectus. Source: Street Insider

Bloomberg ETF analyst Eric Balchunas noted that more asset managers are expected to amend their filings on June 21. He predicts that these funds could debut on July 2. Balchunas wrote on X,

“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.”

Eric Balchunas on SEC’s Next Steps for ETH ETFs. Source: Eric Balchunas Bitwise and Hashdex Update Proposals for Ether ETFs

Bitwise has also updated its proposal with the SEC, including a potential $100 million investment in the ETF from Pantera Capital upon its launch. This highlights the high stakes and interest surrounding these financial products.

Bitwise’s Form S-1 filing. Source: SEC

Additionally, Hashdex is seeking regulatory approval for a combined spot Bitcoin and Ether ETF on the Nasdaq exchange. This proposal came on June 18, shortly after Hashdex dropped plans for a sole Ether ETF.

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