July 22, 2024
Latest Cryptocurrency News

Fidelity Updates Ether ETF Application, Excludes Staking Services

Fidelity Investments has made significant updates to its application for a spot Ether (ETH) exchange-traded fund (ETF), marking a pivotal move in the race to launch crypto-focused ETFs in the United States.

Key Details of the Ether ETF Application

In its latest filing on June 21 with the U.S. Securities and Exchange Commission (SEC), Fidelity disclosed that its affiliate, FMR Capital, has purchased 125,000 shares at $38 each to kickstart the ETF. This initial investment, totaling $4.7 million, was used to acquire 1,250 Ether, underlining Fidelity’s commitment to the digital asset.

Additionally, Fidelity clarified that its ETF will not participate in Ethereum’s proof-of-stake mechanism for earning additional Ether. This decision follows amendments made to the initial proposal last month, emphasizing the fund’s strategy to solely focus on asset appreciation rather than staking rewards.

Industry Outlook and Regulatory Landscape

The SEC recently greenlit rule changes paving the way for several major asset managers, including Fidelity, to list spot Ether ETFs.

However, final approval hinges on the completion of S-1 forms, with anticipated launches as early as July 2, according to analysts.

Source: Street Insider

Eric Balchunas, an ETF analyst at Bloomberg, predicts a flurry of amended filings by asset managers on June 21, anticipating regulatory approvals in the coming days.

Broader Trends in the ETF Market

Beyond Fidelity, other asset managers like Bitwise and Hashdex are also actively seeking regulatory approval for their crypto ETFs. Bitwise recently updated its proposal with a potential $100-million investment from Pantera Capital upon launch. Meanwhile, Hashdex aims to introduce a combined spot Bitcoin and Ether ETF on the Nasdaq, adjusting its strategy after initially planning a sole Ether ETF.

The developments underscore the growing institutional interest in cryptocurrencies. and the ETF market’s evolution to accommodate investor demand for digital assets.

As the regulatory process unfolds, market participants are eagerly awaiting the SEC’s final decisions, which could reshape the landscape of cryptocurrency investments in the traditional financial sector.

Image by fabrikasimf on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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