Fidelity, a prominent investment firm, has once again revised its application for an exchange-traded fund (ETF) focused on Ether (ETH). In a filing with the United States Securities and Exchange Commission on June 21, Fidelity updated its Form S-1 Registration Statement, which is necessary for registering investments for public sale.
The latest filing discloses that FMR Capital, an affiliate of Fidelity, bought 125,000 shares at a price of $38 to initially invest $4.7 million in the ETF. This money was used to acquire 1,250 ETH.
Additionally, Fidelity has confirmed that it will not participate in ETH staking. This decision was made after staking services were removed from the company’s initial proposal on May 21.
According to the filing, “The Trust will not participate 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 means of generating income from its ether holdings.”
The Securities and Exchange Commission has approved a rule change that allows the listing and trading of eight spot Ether ETFs from major asset managers such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise. However, these ETFs still require approval for their S-1 forms from the SEC before they can commence trading.
Bloomberg ETF analyst Eric Balchunas predicts that more asset managers will amend their filings on June 21, with the funds expected to debut on July 2. Balchunas stated, “We’re going to see a bunch more filings today…I think we’ll see some on Monday, too.”
Bitwise, another asset manager, has also updated its proposal with the SEC. On June 19, the company included a potential $100 million investment in the ETF from Pantera Capital upon its trading launch.
Another asset manager seeking regulatory approval is Hashdex. On June 18, the firm proposed creating a combined spot Bitcoin (BTC) and Ether ETF on the Nasdaq exchange. A few weeks prior to this filing, Hashdex abandoned its plans to offer a standalone Ether ETF.
Source: Street Insider