Fidelity recently made changes to its S-1 filing for an Ethereum ETF, as reported in documents submitted to the SEC. This move by the asset management company marks the beginning of what analysts predict will be a busy day for firms seeking approval to list spot Ether ETFs.
The amended S-1 filing from Fidelity revealed a $4.7 million seed investment for its ETF, with FMR Capital, an affiliate, purchasing 125,000 shares to kickstart the funds’ basket. These shares were acquired at $38 per share, and the proceeds were used to buy 1,250 Ether. However, the filing did not mention any fees associated with the ETF. ETF analyst Eric Balchunas noted that issuers might be waiting to see what other firms offer before disclosing their fees.
Interestingly, Fidelity also confirmed that its ETF will not include staking, a feature that allows ETH holders to lock up their assets for transaction validation and receive staking rewards. The initial filing had indicated the inclusion of staking, but this was later removed in the May update.
The SEC approved spot Ethereum ETFs in May, paving the way for firms like Fidelity, BlackRock, VanEck, Grayscale, and others to introduce their ETFs. However, the approval of form 19b-4s was just the first step, and the ETFs will only be able to start trading once the SEC gives the green light to the S-1s. SEC chair Gary Gensler mentioned that he expects the Commission to approve S-1s “in the summer,” with analysts speculating an early July launch date, possibly as soon as July 2.
Overall, the move by Fidelity to amend its S-1 filing for an Ethereum ETF highlights the growing interest in cryptocurrencies and blockchain technology among traditional financial institutions. As more firms seek approval to list spot Ether ETFs, investors are eagerly awaiting the opportunity to gain exposure to this asset class through regulated investment vehicles. The upcoming launch of spot Ether ETFs could open up new avenues for investors to participate in the crypto market, potentially driving further adoption and mainstream acceptance of digital assets.
