Fidelity Amends Ether ETF Bid; SEC Approves Rule Change for Listing
Summary:
Fidelity has updated its application for a spot Ether exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). The amendment included the purchase of 125,000 shares at a cost of $38 by FMR Capital, an affiliate of Fidelity. The company also confirmed that it will not engage in ETH staking. In addition, the SEC has approved a rule change that allows the listing and trading of these ETFs, which now require SEC's approval for their forms before they can begin trading. Other asset managers, including Bitwise and Hashdex, are also making moves within this space.
The internationally renowned investing firm, Fidelity, has once more adjusted its proposal for a spot Ether exchange-traded fund (ETF). On June 21, Fidelity lodged an alteration to its Form S-1 Registration Statement with the U.S. Securities and Exchange Commission (SEC). This document is necessary for the public sale registration of investments. The update disclosed that FMR Capital, a Fidelity subsidiary, obtained 125,000 shares at a rate of $38, setting up the fund's portfolio with a sum of $4.7 million. This amount facilitated the purchase of 1,250 Ether (ETH).
Fidelity has also confirmed it won't partake in ETH staking. A month ago, on May 21, the provision for staking services was omitted from the company's original proposal. The filing mentioned, "The Trust will steer clear of participating in the proof-of-stake validation mechanism of the Ethereum network (in other words, the Trust won't 'stake' its ether) to accumulate more ether or explore other revenue-generating strategies with its ether assets."
The SEC has sanctioned a rule adaptation that permits the listing and trading of eight spot Ether ETFs from leading asset management companies encompassing VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. However, before the ETFs can commence trading, they must garner SEC approval for their S-1 forms.
Eric Balchunas, an analyst at Bloomberg, forecasts that additional asset managers will modify their filings on June 21. He anticipates the funds making their first appearance on July 2, stating, "We're expecting a slew of revised S-1 filings today, likely coming in later this afternoon. It’s then up to the SEC to inform issuers about any last-minute changes and effectiveness (essentially final approval). We're sticking with a predicted July 2nd launch date for the eth ETFs."
Bitwise also refreshed its SEC proposal. On June 19, the asset manager included a possible $100 million investment from Pantera Capital in the ETF when it begins trading.
Meanwhile, Hashdex, another asset management firm, is awaiting regulatory approval. On June 18, the company proposed the creation of a combined spot Bitcoin (BTC) and Ether ETF on the Nasdaq exchange. A few weeks prior to this proposal, Hashdex stepped away from plans to offer a standalone Ether ETF.
Published At
6/21/2024 8:18:24 PM
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