Asset management firm Fidelity has made additional amendments to its application for an Ethereum (ETH) exchange-traded fund (ETF). The move comes as the investment giant and other suitors wait for the green light from the Securities and Exchange Commission (SEC) to begin trading the ETH ETF in the US.
Fidelity Form S-1 Updates – What's New?
On Friday, June 21, Fidelity amended its registration statement on Form S-1 with the Securities and Exchange Commission. This Form S-1 is required to register an ethereum exchange-traded fund for public sale.
According to another DepositFMR Capital, a subsidiary of Fidelity, purchased 125,000 shares at a price of about $38 to fund a $4.7 million basket of funds. The filing then revealed that the fund acquired 1,250 ether tokens using proceeds from the seed baskets.
Furthermore, Fidelity has confirmed that it will not co-sign Ethereum, as was initially revealed in late May. Filling reading:
The Fund will not participate in the Ethereum network's proprietary validation mechanism (i.e. the Fund will not “stake” its Ether) to earn additional Ether or seek other means of generating income from its Ether holdings.
It is worth noting that there has so far been no mention of fees in Fidelity's amended Form S-1, which has been a common feature in the application of other ETF issuers. Eric Balchunas, an ETF expert at Bloomberg, discussed the fee situation in a post on X, saying that issuers will likely wait until the last minute or on Blackrock before setting their fees.
It is worth noting that BlackRock also updated its S-1 form, reporting seed capital of about $10 million. However, the asset management giant did not disclose any fees on its spot ETF.
BlackRock is there.. no fees published but they reported saving $10 million (although I think that may have already been known in the previous filing). Anyway this is basically a detour. The ball is in the SEC's court now. pic.twitter.com/nbYoJo8Xj4
– Eric Balchunas (@EricBalchunas) June 21, 2024
Analyst doubles down on ETF launch date
In another post on Platform X, Balchunas revealed that nothing significant has happened to change his predictions regarding the launch date of Ethereum ETFs. According to a Bloomberg expert, July 2, 2024 remains the expected date for these funds to start trading in the United States.
What's next: We'll see a batch of revised S-1 filings today, perhaps later this afternoon. The ball is then in the SEC's court to notify issuers of any final and effective changes (also known as final approval). We are holding the line with July 2nd as the launch date for our over/under for eth 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 its next course of action. “Then, the ball is in the SEC’s court to inform issuers of any final and effective changes (also known as final approval),” the ETF analyst said.
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