Fidelity Enhances Ethereum ETF Application to Incorporate Staking

Fidelity’s Updated Spot Ethereum ETF Application

Fidelity has submitted an updated Spot Ethereum exchange traded fund (ETF) application to the U.S. Securities and Exchange Commission (SEC) on March 18, now including staking. The update includes the possibility of staking a portion of the fund’s assets through trusted staking providers.

Staking Details

According to Fidelity’s 19b-4 form to the SEC, the Sponsor may engage in staking activities with one or more trusted providers, potentially including an affiliate of the Sponsor. In return for staking, the Fund would receive network rewards in ether tokens.

Implications for Staked ETH ETFs

Chanchal Samadder from ETC Group highlighted the appeal of staking yield in Ethereum for institutional investors. However, he anticipates delays in approval for staked ETH ETFs in the U.S., contrasting with Europe where such products are more accessible.

Current ETH Spot ETF Applications

Franklin Templeton recently joined a list of asset managers applying for spot Ethereum ETFs with the SEC. This list includes prominent names like BlackRock, Grayscale, VanEck, and more, indicating a growing interest in Ethereum-based investment products.

Outlook on ETH ETF Approval

Despite recent delays in approving Ethereum ETFs by the SEC, industry providers remain optimistic about the eventual approval. Many believe that the demand for these products will lead to their approval in the near future.

Hector McNeil from HANetf expressed confidence in Ether’s approval, drawing parallels with Bitcoin’s successful ETF launches earlier this year. The approval of Bitcoin spot ETFs has sparked significant trading activity, with BlackRock’s iShares Bitcoin Trust leading the market with $10 billion in assets under management within two months of launch.