Fidelity announces a $4.7 million seed investment in its spot Ethereum ETF, highlighting a significant move in the digital asset space as more filings are expected.
Bollywood Fever: Asset management giant Fidelity has disclosed a $4.7 million seed investment in its spot Ethereum (ETH) exchange-traded fund (ETF), according to its latest amended filing.
FMR Capital, Inc., an affiliate of Fidelity, initially bought one share for $40 in late May. Subsequently, on June 4, FMR purchased 125,000 shares at approximately $38 each, as detailed in Fidelity’s amended registration form filed on Friday. “Total proceeds to the Trust from the sale of the Seed Baskets were $4,749,975.00,” the filing states. “On June 4, 2024, the Trust purchased 1,250 ether with the proceeds of the Seed Baskets.”
Notably, Fidelity’s filing did not mention any fees, consistent with previous statements from other spot Ether ETF issuers. Bloomberg Senior ETF Analyst Eric Balchunas remarked on this omission on social media platform X, noting, “Fidelity kicking off the S-1-athon. No fee included yet tho (Franklin only one w fee so far at 19bps)… Bitwise didn’t include either. Everyone likely waiting till last min and/or on BlackRock to disclose to see what they need to orbit around.”
Earlier this week, Bitwise updated its registration form, revealing Pantera Capital Management LP’s interest in purchasing up to $100 million of shares. Bitwise also disclosed a $2.5 million seed investment.
Last month, the SEC approved 19b-4 forms for eight Ethereum ETFs. However, issuers still need their S-1 statements to become effective before trading can commence. Balchunas indicated that more amended S-1 filings are anticipated. “Then ball’s in SEC’s court to let issuers know about any final changes and effectiveness (aka final approval). We holding the line with July 2nd as our over/under for eth ETFs launch date,” he added on X.
This strategic move by Fidelity underscores the growing institutional interest and confidence in Ethereum and the broader cryptocurrency market. As the approval process progresses, the launch of these ETFs could mark a significant milestone for digital asset investments.
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