Fidelity has updated its application for a Spot Ethereum exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC) on March 18, now including staking.
According to Fidelity’s filing with form 19b-4 submitted to the SEC, the company may engage in staking activities through trusted staking providers, including its affiliates. In return for staking, the fund would receive network rewards in the form of ether tokens, potentially treated as income for the fund’s services.
Chanchal Samadder, head of product at ETC Group, highlighted earlier this month that Ethereum’s staking yield serves as a key attraction for institutional investors. However, Samadder anticipates delays in the approval of staked ETH ETFs in the United States compared to Europe, where such products are more readily available.
Franklin Templeton joined a growing list of asset managers, including BlackRock, Grayscale, and VanEck, in filing for a spot Ethereum ETF with the SEC in February. Despite the delays, providers remain optimistic about the eventual approval of Ethereum ETFs in the United States due to increasing demand and liquidity thresholds being met.
The SEC recently extended the review period for VanEck’s Ethereum ETF application until May 23, further prolonging the decision process. Nevertheless, many product providers believe that the approval of Ethereum ETFs is inevitable, following the SEC’s approval of nearly a dozen Bitcoin spot ETFs in January.
The approval of Bitcoin spot ETFs, including BlackRock’s iShares Bitcoin Trust, has sparked significant trading activity and garnered substantial assets under management (AUM), demonstrating growing demand for crypto investment products.