Fidelity, an asset management firm, has made additional modifications to its application for an Ethereum (ETH) spot exchange-traded fund (ETF).
The investment behemoth and other applicants are currently awaiting approval from the Securities and Exchange Commission (SEC) to begin trading ETH ETFs in the United States. This action is being taken in anticipation of approval.
Fidelity submitted an amended Form S-1 Registration Statement to the Securities and Exchange Commission (SEC) on Friday, June 21. It is necessary to submit this S-1 form in order to register the Ether exchange-trading fund for public sale.
The most recent filing indicates that FMR Capital, an affiliate of Fidelity, acquired 125,000 shares at approximately $38 each in order to provide the funds’ portfolio with $4.7 million. The trust acquired 1,250 Ether tokens using the proceeds of the seed baskets, as revealed in the filing.
Additionally, Fidelity issued a confirmation that it will not engage in Ethereum staking, as it had previously disclosed in late May. The filling was as follows:
“The Trust will refrain from engaging in the Ethereum network’s proof-of-stake validation mechanism (i.e., “staking” its ether) in order to gain additional ether or pursue alternative methods of deriving income from its ether holdings.”
It is important to note that Fidelity’s amended S-1 form did not include any reference to fees, a feature that has been present in the applications of other ETF issuers. Eric Balchunas, a Bloomberg ETF expert, addressed the fee situation in a post on X. He suggested that issuers are likely postponing their fee decisions until the last minute or until Blackrock.
It is also important to note that BlackRock has updated its S-1 form, which now indicates a seed capital of approximately $10 million. Nevertheless, the asset management giant did not disclose any fees associated with its ETH spot ETF.
Balchunas disclosed in an additional post on the X platform that his prediction regarding the Ethereum spot ETFs’ launch date has not been significantly altered. The Bloomberg expert anticipates that these funds will commence trading in the United States on July 2, 2024.
Balchunas stated that the SEC will be required to determine the next course of action in the wake of the most recent round of S-1 amendments. “Subsequently, the SEC is responsible for informing issuers of any final modifications and their effectiveness (also known as final approval),” the ETF analyst stated.
Also Read: Consensys Vs. SEC Lawsuit Progresses to Make Crypto Regulations Clearer
Wallets