Fidelity Reveals $4.7M Seed Investment for Spot Ether ETF

Fidelity Seed Investment Spot Ether ETF
Fidelity has updated its S-1 filing with the United States Securities and Exchange Commission (SEC) for a spot Ethereum ETF, revealing a $4.7 million seed investment.

This move makes Fidelity the first to file an amended S-1 Registration Statement with the SEC, initiating what analysts predict will be a busy day for firms seeking approval to list spot Ether ETFs.

The filing details that Fidelity’s affiliate, FMR Capital, purchased 125,000 shares at $38 per share to seed the ETF’s basket, totaling 1,250 Ether. Notably absent from the disclosure were details about fees, prompting ETF analyst Eric Balchunas from Bloomberg to observe that issuers might be waiting to see what competitors offer.

In January, issuers of spot Bitcoin ETFs seized on low fee structures ahead of SEC approval. Grayscale, for instance, set a fee of 1.5%, which contributed to substantial outflows from its GBTC spot Bitcoin ETF.

Fidelity’s updated filing also confirms that their ETF will not include staking, despite initial plans mentioning it in March and subsequent updates in May removing it.

The SEC approved spot Ethereum ETFs in May, a decision benefiting applications from Fidelity, BlackRock, VanEck, Grayscale, Invesco Galaxy, Franklin Templeton, ARK 21Shares, and Bitwise.

However, this approval was just the first step; final approval of S-1 filings is awaited before these ETFs can commence trading. SEC Chair Gary Gensler indicated that approvals could come as early as summer, with analysts suggesting a potential launch date around July 2.

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