Fidelity continues to advance its efforts for the launch of a Spot Ethereum ETF [ETF] The revised S-1 form can be submitted to the United States Securities and Exchange Commission [SEC]. This amendment comes at a crucial moment as expectations are rising that Ether ETFs may be approved as early as 23 May.
Fidelity’s updated application specifies in the update that Ether tokens used to back up its proposed ETF will not have their Ether tokens staked. This is to resolve security and regulation issues related to stake activities. Although staking increases network security and yields, there are concerns with asset custody as well as the regulatory framework. Fidelity aims to reduce these fears and align their ETFs with the regulatory standard by omitting stake.
SEC mandates the S-1 document for the launch of publicly traded security in the U.S. This document ensures that federal regulations are met and provides a thorough overview of the offering and its security.
Also Read: SEC Asks Exchanges To Update 19B-4 filings For Spot Ethereum ETFs
SEC’s shifting position on Ether-based ETFs
Fidelity made its amendment amid news of SEC evolving its stance towards spot Ethereum ETFs. SEC asked ETFs to update 19b-4s due to changing regulations and political pressure. The SEC may be taking a more positive view of these products.
Eric Balchunas is a senior Bloomberg ETF analyst who has increased the odds of approval. In the case of 19b-4, it has been increased from 25% up to 75%. Yet, he points out that trading will not commence even if 19b-4 files are accepted. ETF Analyst James Seyffart stated that, while S-1 filing approvals can take up to several months or weeks, it is likely they will be accepted if 19b-4 files are approved.
How does Fidelity BTC’s ETF perform?
Fidelity’s change and potential approval of Ethereum-based ETFs may have a significant impact on the market. Already, the ETF market is showing positive signs. U.S. Bitcoin ETFs recently showed a positive trend. recorded The daily total inflows of net funds reached $302.97 millions, which is the highest amount since 3 May. Fidelity FBTC led the inflows, with $131 millions.
Approving Ether-based ETFs may further boost market dynamics. It would allow investors to access Ethereum through more controlled avenues.
Also Read: Ethereum (ETH) Forecasted To Hit $10,000: Here’s When
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Source: watcher.guru
