Fidelity Amends Ether ETF Filing, Reveals $4.7M Seed Capital

Investment powerhouse Fidelity has once again revised its application for a spot Ether exchange-traded fund (ETF). In the latest update filed with the U.S. Securities and Exchange Commission (SEC) on June 21, Fidelity modified its Form S-1 Registration Statement. This form is crucial for registering investments intended for public sale. According to the new documentation, FMR Capital, a branch of Fidelity, acquired 125,000 shares at $38 each, summing up to an investment of $4.7 million. This capital was utilized to buy 1,250 Ether (ETH). Fidelity clarified that it would abstain from ETH staking.

A month prior, on May 21, Fidelity had initially proposed involvement in ETH staking services but later decided to remove this component. The filing affirms, “The Trust will not engage in the proof-of-stake validation mechanism of the Ethereum network (i.e., the Trust will not ‘stake’ its ether) to earn additional ether or seek other ways of generating income from its ether holdings.”

In parallel developments, the SEC has given the green light to a rule change that permits the listing and trading of eight spot Ether ETFs from notable asset managers. These include firms like VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. Despite this approval, the ETFs still need the SEC to approve their specific S-1 forms before they can officially start trading.

Bloomberg’s analyst, Eric Balchunas, has indicated that more asset managers are predicted to amend their filings on the same day, June 21. Balchunas forecasts the introduction of these funds on July 2. He mentioned in a social media post that several amended S-1 forms would likely be submitted that afternoon, and the SEC would then need to communicate any final modifications and grant official approval. He remains optimistic about the July 2 timeline for the launch of ETH ETFs.

Similarly, Bitwise has also updated its ETF proposal with the SEC. In a filing made on June 19, the asset manager disclosed that Pantera Capital might invest $100 million in the ETF once trading kicks off.

Another player in the regulatory approval race is Hashdex. On June 18, Hashdex submitted a proposal to create a combined spot Bitcoin (BTC) and Ether ETF on the Nasdaq stock exchange. Prior to this filing, Hashdex had abandoned plans to offer a standalone Ether ETF.

The process for getting an ETF approved involves multiple stages, and each revision brings these companies closer to their goal. As more asset managers submit their amended filings and the SEC continues its review, the competition to be among the first to launch a spot Ether ETF heats up.

Fidelity’s recent updates and strategic decisions reflect the complexity and dynamic nature of the regulatory environment. By omitting ETH staking, Fidelity seems to be playing it safe, perhaps to align more closely with SEC guidelines and expectations.

As the ETF landscape for cryptocurrencies like Ether evolves, investors are keeping a close eye on each move made by major players. Should the SEC grant final approval to these proposals, it could open up new investment opportunities and mark a significant milestone in the mainstream acceptance of cryptocurrency investments.

The race for launching spot Ether ETFs is intensifying, with numerous asset managers all vying for a piece of the action. The SEC’s approval process will be a pivotal factor in when, and how, these funds will eventually come to market.