As an experienced financial analyst, I find Fidelity’s entry into the Ethereum ETF market an intriguing development. Fidelity’s investment strategy, as disclosed in their recent SEC filing, demonstrates a well-timed entry into the market with a substantial investment in a short period. The absence of fee details in the filing, which is consistent with other spot Ethereum ETF issuers, indicates that they are likely waiting for industry leaders like BlackRock to disclose their fees before making a decision.
In a recent SEC filing update, Fidelity revealed that it had invested approximately $4.7 million in a Ethereum spot ETF through its affiliate FMR Capital. The initial investment came in the form of one share purchased for around $40 towards the end of May. Subsequently, on June 4th, FMR Capital procured roughly 125,000 shares at an average price close to $38 per share.
Market Implications and Regulatory Updates
The filing indicated the lack of mentioned fees, aligning with the practice of other Ethereum spot ETF initiators. According to Bloomberg’s Senior ETF Analyst Eric Balchunas, these issuers might be holding off on revealing their fees until BlackRock makes its disclosure public.
Fidelity initiates the filing process for its Bitcoin ETF, joining the crowd of applicants but without revealing any fees as of yet. Only Franklin Templeton has announced a fee of 0.19%. Bitwise also held back on disclosing fees. Most likely, other applicants are biding their time or looking to follow BlackRock’s lead before making their moves.
— Eric Balchunas (@EricBalchunas) June 21, 2024
This week, Bitwise announced an update to its registration, disclosing a $2.5 million seed investment and Pantera Capital’s intention to purchase up to $100 million worth of their shares.
As an analyst, I’ve observed that the Securities and Exchange Commission (SEC) has given its nod to 19b-4 forms for eight Ethereum Exchange-Traded Funds (ETFs). However, it is essential to note that these ETFs require their S-1 statements to be effective before any trading activity can begin. According to my analysis, there might be an influx of amended S-1 filings imminently, as predicted by Bloomberg Intelligence’s Eric Balchunas. Consequently, based on the current timeline and assuming no unforeseen delays, I anticipate that we could witness the launch of Ethereum ETFs around July 2nd, subject to the SEC granting its final approval.
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2024-06-21 20:54