Investment giant Fidelity Investments has made a significant update to its application to launch a dedicated Ether (ETH) exchange-traded fund (ETF), according to a document submitted to the United States Securities and Exchange Commission on June 21. This modification to Form S-1, which is crucial for registering public investments, indicates a major step forward for the project.
The review of the document reveals that Fidelity’s affiliate, FMR Capital, has made a substantial capital contribution by acquiring 125,000 shares at a price of $38 each, resulting in an initial investment of $4.7 million. This amount was then used to purchase 1,250 units of Ether, which will support the fund’s assets.
It is important to note that Fidelity has confirmed it will not participate in staking ETH. This decision aligns with the removal of this feature from its original proposal made on May 21. The document clarifies that the trust will not engage in the Ethereum network’s proof-of-stake validation mechanism to earn additional Ether or generate income from its holdings.
In addition to Fidelity, the recent rule change approved by the SEC allows other major asset managers such as VanEck, BlackRock, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise to list and trade eight spot Ether ETFs. However, these funds are still awaiting final approval from the SEC for their S-1 forms before they can be officially marketed.
According to Eric Balchunas, an ETF analyst at Bloomberg, June 21 will witness a series of filing changes, with the funds expected to launch on July 2. Balchunas commented, “We will see a bunch of amended S-1s filed today, probably late afternoon. Then the ball is in the SEC’s court to inform issuers of any final changes and effectiveness (also known as final approval). We hold the line with July 2 as the over/under launch date for ETH ETFs.”
As of the time of publication, the price of ETH was quoted at $3,485.13, experiencing a 1% drop in the last 24 hours.
Disclaimer: The views and opinions expressed in this article, by the author or anyone mentioned, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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