Financial services corporation and mutual fund Fidelity filed an S-1 registration statement with the Securities and Exchange Commission (SEC) for a proposed spot Ethereum exchange-traded fund (ETF) incorporating a staking feature.
According to the filing, Coinbase Custody Trust Company is designated to serve as the custodian for ETH assets. The ETF shares will be listed and traded on the Cboe BZX Exchange pending approval.
James Seyffart, an ETF analyst at Bloomberg, observed that the latest filing from Fidelity represents their first submission rather than an amendment, contrasting with their previous filing of a 19b-4. However, James Seyffart expressed skepticism, suggesting that he anticipates the current wave of spot Ethereum ETF applications will face rejection in May.
Yes, @Fidelity filed the S-1 for their #ethereum ETF this morning. This is not an amendment this is their first. They had only filed a 19b-4 until today. https://t.co/stuKa4ZlSh pic.twitter.com/FiVJ08JwF8
— James Seyffart (@JSeyff) March 27, 2024
The S-1 filing plays a crucial role in the ETF listing procedure, demonstrating Fidelity’s aim to broaden accessibility to Ethereum for a wider scope of investors. The S-1 document sheds light on the proposed fee structures of each entity involved, offering better insight into their competitive standing within the dynamic cryptocurrency market.
Looking ahead, the issuer will wait for SEC approval of the 19b-4 form and for the S-1 filing to take effect. Following this procedure, trading can commence the day after these processes have been finalized.
Fidelity Joins Investment Giants in Pursuit of Ethereum ETF Approval
With the recent move, Fidelity has entered the ranks of other investment management firms such as ARK Investment and 21Shares, Grayscale, BlackRock, and Franklin Templeton. These entities have all filed applications for spot Ethereum ETFs in recent months.
The ETF aims to closely track the price movements of Ethereum’s native cryptocurrency, ETH. If successful, this endeavor could potentially trigger a notable transformation in the digital asset landscape, presenting Ethereum as an appealing investment choice for those inclined towards traditional investment avenues.
Furthermore, Fidelity aims to allow investors to stake a portion of their potential ETH fund holdings. As part of this initiative, the company, along with Grayscale, ARK Investment and 21Shares, has recently amended its filing for a potential spot Ethereum ETF to incorporate a staking component.
The SEC has been gradually delaying decisions on applications for various Ethereum ETFs, which included submissions from Grayscale, Fidelity, BlackRock, Invesco Galaxy, and ARK Investment and 21Shares, among others. This has resulted in analysts’ significantly decreased expectations regarding the approval likelihood for such products this year. Nonetheless, some speculate that approval may come as soon as May.
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