Despite the negative publicity surrounding applications for a spot Ether ETF, Fidelity Investments has opted to forward with its plans. The company appears to have made it clear that it wants to launch an ETH ETF in November, when Cboe, the exchange where the product would be traded, submitted a 19b-4 form on Fidelity’s behalf.
Fidelity has recently submitted a listing statement known as Form S-1, which represents yet another step towards obtaining consent for the Fidelity Ethereum Fund. Before the fund is granted the authority to trade, the Securities and Exchange Commission (SEC) must approve the 19b-4 and accept the S-1 form as valid.
Fidelity did not mention the relevant product cost in its most recent filing. The fund’s registration statement, like other filings, includes information about its plans to stake a portion of the trust’s assets with one or more staking framework providers.As a result of all staking acts in which the trust is permitted to participate, the trust expects to receive some Ether staking incentives in the form of federal income tax.
According to the statement, Fidelity Digital Asset Services will have full ownership and control over the private keys associated with each staked Ether. Fidelity is one of many issuers attempting to launch a spot Ether ETF, just after the SEC approved spot BTC funds. The SEC is scheduled to issue its rule on ETFs that hold ETH directly before the end of May.
Industry observers believe such money can be delivered, but they are concerned that the SEC will do everything necessary to delay the process. Another party appears to be more optimistic, following the agreement for spot BTC funds.
Anthony Scaramucci, the founder of SkyBridge Capital, expressed concern that SEC Chair Gary Gensler might use delaying tactics. Marshall Beard, Gemini’s Chief Operating Officer, believes that the situation could be extended for another nine months before any serious resolution can be reached.
The top ten bitcoin ETFs have earned $11.7 billion since their inception on January 11th. Hashdex’s bitcoin futures fund was approved to hold BTC directly, hence it joined the list.