A few weeks ago, we unexpectedly received the news that the US Securities and Exchange Commission (SEC) had approved several Ethereum (ETH) Spot Exchange-Traded Funds (ETFs). However, the actual launch will take some time and depends on the requests for S-1 forms.
On June 21, asset manager Fidelity made an adjustment to register their fund for public sale. According to the filing, an affiliate of Fidelity, FMR Capital, purchased 125,000 shares for approximately $38 each. This was necessary to fill the fund basket with $4.7 million. Subsequently, 1,250 ETH tokens were purchased with these proceeds. Fidelity has also confirmed that the fund will not participate in staking and therefore will not earn any additional ETH.
Fidelity’s amended S-1 statement does not provide information about the fees buyers of the ETF will have to pay. Likely, as with the Bitcoin (BTC) Spot ETFs, issuers will wait until the last minute to set their fees.
Many crypto investors, including ETF expert Eric Balchunas, were hoping for a July launch. For the time being, however, the SEC remains very quiet and it is not known when we can expect an actual launch.
ETH tokens on exchanges reach historic low levels
On-chain data from the Ethereum network shows that the total ETH balance on exchanges is historically low due to a constant outflow of users. Currently, only 10.2% of all ETH coins are on trading platforms, a drop of almost 30% from four years ago.
Crypto experts view this development as a bullish signal for the price of the digital currency. The outflow of coins into personal wallets signals strong conviction from long-term investors, making it harder for buyers to get their hands on ETH. This trend supports expectations of a significant increase in the value of Ethereum in the future.
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Source: https://newsbit.nl/fidelity-wijzigt-formulier-voor-ethereum-etf-wat-je-moet-weten/
