Fidelity Updates S-1 Filing for Ether Spot ETF; Initial Investment at $4.7M

• Fidelity’s initial Ethereum ETF investment is $4.7 million, with 125,000 shares purchased by affiliate FMR Capital.
• Updated S-1 filings by Fidelity and other firms are part of the process for SEC approval of spot Ethereum ETFs.
• Eric Balchunas anticipated July 2 would be the launch date for these spot Ethereum ETFs.

Fidelity has updated its proposal for a spot Ethereum (ETH) exchange-traded fund (ETF). In a filing with the U.S. Securities and Exchange Commission (SEC) on June 21, the corporation revealed critical data about the fund’s structure.

Fidelity Modifies its S-1 Filing

Fidelity’s initial investment in the ETF was $4.7 million, with affiliate FMR Capital buying 125,000 shares to start the fund’s portfolio. FMR bought 125,000 shares at $38 per share and 1,250 Ether of the proceeds. This shift is part of Fidelity’s updated Form S-1 Registration Statement, which is required to register investments for public sale.

Moreover, Fidelity released the initial cash for the Ether spot ETF but did not include fees. Fidelity’s updated proposal came after the SEC approved the listing of eight spot Ether ETFs, including VanEck, Grayscale, and BlackRock.

Eric Balchunas Insights

Bloomberg analyst Eric Balchunas stated,

Fidelity kicking off  the S-1-athon. No fee included yet tho (Franklin only one w fee so far at 19bps). Bitwise didn’t include either. Everyone likely waiting till last min and/or on BlackRock to disclose to see what they need to orbit around.

Additionally, Eric Balchunas stated a series of amended S-1 filings for Ethereum ETFs are expected on June 21. Following these filings, the SEC will review and communicate any required final changes before approving. Furthermore, he anticipated July 2 would be the launch date for these Ethereum ETFs.

Fidelity’s Ether ETF Progresses Without Staking

In its update, Fidelity also declared that the asset manager’s ETF will not involve staking. Proof-of-stake systems allow ETH holders to lock up their assets to participate in transaction validation and collect staking incentives.

However, accepting Form 19b-4s was only the first stage; before the ETFs may be traded on exchanges, S-1s must be approved. SEC chairman Gary Gensler recently told legislators that he expects the Commission to approve S-1s “in the summer.”