Fidelity Enhances Ethereum ETF Application with Staking
Fidelity has recently submitted an updated application for its Spot Ethereum exchange-traded fund (ETF) to the U.S. Securities and Exchange Commission (SEC). The new application includes a provision for staking, which allows Fidelity to stake a portion of the fund’s assets through trusted staking providers. In return, the fund will receive network rewards in the form of ether tokens.
Delays Expected for Staked ETH ETFs
Chanchal Samadder, head of product at ETC Group, believes that staked ETH ETFs will face delays in receiving approval in the United States. While these products are readily accessible to investors in Europe, regulatory hurdles may slow down their introduction in the U.S.
Current Status of ETH Spot ETF Applications
Franklin Templeton, an investment firm, joined a long list of asset managers including BlackRock, Fidelity, Grayscale, VanEck, Invesco, Galaxy, Ark Invests, and 21Shares by filing a spot Ethereum ETF application with the SEC in February.
Providers Believe ETH ETFs are “Inevitable” in the U.S.
Despite recent delays in approving a spot Ethereum ETF from BlackRock, many product providers remain optimistic about the future. They believe that it is only a matter of time before the SEC approves Ethereum ETFs due to increasing demand from investors. Hector McNeil, co-CEO and co-founder of HANetf, stated that if Bitcoin can meet all the necessary criteria for approval, then Ether should also qualify.
In January, the SEC approved nearly a dozen Bitcoin spot ETFs. This decision triggered a trading frenzy as demand for these products continues to grow. The BlackRock iShares Bitcoin Trust, which was one of the approved ETFs, has already attracted $10 billion in assets under management within two months of its launch.
Hot Take: Staking Boosts Ethereum ETF Potential
With Fidelity’s updated application now including staking, the potential for Ethereum ETFs to gain traction in the market has increased. Staking offers investors an opportunity to earn rewards by holding Ethereum, making it an attractive option for institutional investors seeking yield. While delays may be expected in the U.S., the approval of staked ETH ETFs seems inevitable given the demand and success of Bitcoin ETFs.
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