Fidelity Investments has tweaked its application for a spot Ether (ETH) exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) according to a June 21st filing. This update comes amidst a flurry of activity in the ETF space as major asset managers vie for a slice of the cryptocurrency pie.
The amended Form S-1 Registration Statement reveals that Fidelity seeded the fund’s basket with $4.7 million worth of Ether. This translates to 1,250 ETH purchased at roughly $38 per coin. Interestingly, the filing confirms that Fidelity will not engage in staking Ether to generate additional income. Staking, which was initially included in the proposal, was removed a month prior on May 21st.
This development follows the SEC’s approval of a rule change allowing eight spot Ether ETFs from various players like BlackRock, VanEck, and Grayscale to list and trade. However, these ETFs still require individual S-1 form approval before hitting the market.
Industry watchers like Bloomberg ETF analyst Eric Balchunas predict further updates from asset managers on June 21st, potentially paving the way for a July 2nd debut for these funds. Balchunas also points to Bitwise updating its SEC proposal, including a potential $100 million investment from Pantera Capital upon launch.
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Another player in the game is Hashdex, which recently proposed a combined Bitcoin and Ether ETF on the Nasdaq exchange. This move follows their earlier decision to scrap plans for a standalone Ether ETF.
Fidelity’s updated application, along with the recent regulatory changes and industry maneuvers, paints a picture of a rapidly evolving landscape for cryptocurrency ETFs in the U.S. With major players involved and a potential July launch date on the horizon, investors interested in gaining exposure to Ether through a traditional investment vehicle will be watching developments closely.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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