Fidelity’s Amended S-1 Application
Asset manager Fidelity has recently submitted an amended S-1 application to the SEC for its proposed spot Ether exchange-traded fund (ETF). The updated application clarifies that the ETF’s underlying Ether tokens will not be staked, as reported by various sources.
Challenges and Speculation
In the midst of evolving regulatory dynamics, the SEC’s shift in perspective on spot Ether ETFs has sparked speculation. Senior Bloomberg ETF analyst Eric Balchunas has revised the likelihood of approval to 75%, signaling a potential shift. Analysts like James Seyffart emphasize the importance of approval for S-1 filings alongside 19b-4 forms, indicating a complex approval process.
There are concerns over the liquidity of Ether’s markets and its regulatory history, contributing to doubts about a rapid green light. Research analyst Matteo Greco raises the possibility of rejections leading to prolonged approval timelines, potentially stretching into 2025.
Despite ongoing discussions between fund companies and the SEC, there is a subdued level of activity compared to previous instances like Bitcoin ETF approvals. This lower visibility has led to an expectation of disapproval in the community.
“Most people are universally expecting a disapproval order,” Katherine Dowling, general counsel for Bitwise, shared with Bloomberg.
