Fidelity Discloses $4.7 Million in Seed Capital as It Amends Ethereum ETF Filing
The asset management firm Fidelity has recently refiled their ETF application after adding amendments. The edits have also disclosed a seed funding of $4.7 million. According to Blomberg analyst Eric Balchunas, the firm updated its filing on 21st June 2024. The analyst further noticed that the Ethereum ETF is expected to make a debut on 2nd July 2024.
Fidelity has updated their Ethereum ETF application on various occasions. However, the filing with the Securities and Exchange Commission of the United States on 21st June indicates an important change.
Fidelity Includes S-1 Form
As per the Bloomberg senior analyst, the asset management firm included the S-1 form with its registration statement. This form is attached for a public sale declaration.
As per the filing, FMR, a firm working as an affiliate of Fidelity, has acquired 125,000 shares with $38 per unit cost. This purchase has set up the seed funding for the ETF valued at $4.7 million. The funding is utilized to purchase 1250 Ethereum tokens.
Additionally, Fidelity has also verified that it has not included Ethereum staking. As per the asset manager, the staking services were discarded from the original proposal on 21st May 2024.
As per Fidelity officials, the Trust does not use proof-of-staking verification method as in the Ethereum network. The PoS is only not leveraged because the fund has decided not to stake Ethereum tokens in order to generate yield.
SEC Approved 8 Spot Ethereum ETF Applications
Furthermore, the Securities and Exchange Commission of the United States has also approved 8 spot Ethereum ETF applications. These applications were filed by major financial firms operating within the nation.
Bloomberg analyst Eric Balchunas noticed that in addition to approving ETF applications for BlackRock, Fidelity, VanEck, Grayscale, Ark 21Shares, Franklin Templeton, Invesco Galaxy, and Bitwise SEC is likely to approve more Ethereum ETFs on 21st June 2024.
The analyst further projected that the funds are likely to get an official listing on 2nd July 2024. He noted that a number of financial institutions have filed amended S-1 forms recently.
As per his analysis, it is now up to the SEC to share the details about any changes and final approval date. He further noticed that the firm is holding the 2nd July 2024, with a few days ahead or before for Ethereum ETF debut. It is important to note that Bitwise has also updated its Ethereum ETF filings with the SEC.
Hashdex is another asset management firm in the same category. On 18th June, the firm filed for a combined Bitcoin and Ethereum ETF on NASDAQ. Hashdex has forfeited the plans for a new ETH ETF a few weeks before the hybrid ETF filing.
SEC Withdraws Ethereum Probe
Another report from Consensys noted that the SEC has dropped the investigation. The report indicates that the regulators have classified Ethereum as a commodity rather than security.
However, a number of market participants do not agree with this opinion. As of 19th June, the SEC closed the investigation into the Ethereum network. The regulatory agency was working on a lawsuit to prove ETH as a security but decided to shut it down after the lack of viability.
Laura Brookover, the solicitor from Consensys has noticed that SEC is not likely to file any petition against Ethereum alleging that it is a security. She added that the lawsuit was a reaction from the SEC after the regulator was prompted to withdraw the subpoenas on Consensys regarding the rule change approvals about ETH as a commodity.
A document issued by Consensys has noticed that SEC’s Ethereum spot ETF approvals show that the agency has concluded the legal state of Ethereum as a commodity and not a security. Nevertheless, the SEC has to issue an official statement on the matter. In response to a Cointelegraph inquiry, the SEC spokesperson neither confirmed nor denied an investigation.
