Fidelity discloses $4.7 million seed investment for its spot Ether ETF

Fidelity has amended its S-1 filing for the Ethereum Spot ETF, according to documents filed with the U.S. Securities and Exchange Commission (SEC) on Friday.

The asset management company is the first to file an amended S-1 registration statement with the Securities and Exchange Commission, kicking off what ETF analysts say could be a busy day for companies looking to gain approval to list Ethereum ETFs.

Fidelity is amending your S-1 filing

Fidelity filings disclosed a $4.7 million seed investment for its ETF, with its affiliate FMR Capital purchasing 125,000 shares to round out the fund's basket. FMR acquired 125,000 shares at $38 per share, and then purchased 1,250 ETH with the proceeds, the company said in the filing.

While it disclosed the initial capital for its spot ether ETF, Fidelity did not include fees. This could be a “waiting” game for issuers as they gauge what others are offering, says Eric Balchunas, a senior ETF analyst at Bloomberg.

“Fidelity begins the S-1 race. No fees have been included yet (Franklin has only one fee so far at 19 basis points). Bitwise has not included either. Everyone will likely have to wait until the last minute and/or on BlackRock to reveal what They need to pivot,” he posted on X.

In January, before the SEC approved bitcoin ETFs, issuers looked to cash in by revealing ultra-low fees. Grayscale, which has set its fees at 1.5%, has seen massive outflows from its spot Bitcoin ETF GBTC.

No staking

In its update, Fidelity also confirmed that the asset manager's ETF will not include staking. In proof-of-stake mechanisms, ETH holders can lock their assets to participate in transaction validation and in return receive stake rewards.

The company's initial filing in March indicated the inclusion of staking, before an update in May removed that.

When will spot ETFs start trading?

The SEC approved Ethereum spot ETFs in May, giving a nod to applications from Fidelity, BlackRock, VanEck, Grayscale, Invesco Galaxy, Franklin Templeton, ARK 21Shares, and Bitwise.

However, approval of Form 19b-4s was just the first step and Form S-1 must be approved before ETFs hit exchanges for trading. In recent comments, SEC Chairman Gary Gensler told lawmakers that he expects the commission to approve the S-1 “in the summer.”

Analysts believe this could happen in early July, according to Bloomberg's Balchunas Pointing That launch date could be as early as July 2.

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