The U.S. Securities and Exchange Commission’s (SEC) serial delay in approving spot Ethereum ETFs hasn’t stopped Fidelity Investments from adding the staking option to its filing.
Fidelity Adds Staking to Spot Ethereum ETF
In November 2023, the US investment management company filed to list its Ethereum spot ETF product with the SEC. This made it the 7th company in the US to focus on the product, following companies such as BlackRock, Hashdex, Invesco and Grayscale Investments.
The spot Ethereum ETF, if approved, will trade in accordance with the BZX rule.
The SEC is normally expected to make a decision on the rule change within 45 days of its release for public comment. However, the agency’s decision did not come as expected, even after the request for public comment was made in the first week of December. Instead, the SEC announced a 45-day extension, delaying its decision on the Fidelity spot Ethereum ETF until March 5.
It’s already well past the expected date and the SEC still hasn’t made a decision on Fidelity’s spot ETH ETF or that of any other applicant. While it waited for the SEC, Fidelity decided to add staking for the cryptocurrency. Precisely, the asset management company plans to stake some of the fund’s assets through one or more trusted staking providers.
“Considering any staking activity in which the Fund may engage, the Fund would receive certain network rewards of ether tokens, which may be considered income to the Fund as compensation for services provided,” Fidelity stated in its modified spot Ethereum ETF application.
Deadline is fast approaching
Meanwhile, Ark Invest and 21Shares are still waiting for a decision for their joint spot Ethereum ETF by May. Industry observers are also closely watching the May 23 deadline for VanEck’s application, a crucial time for the product.
Given the way the regulator has consistently pushed back the date for its decision, it is not certain that the SEC will adhere to the next deadline. Top industry players like JPMorgan are already questioning the possibility of an SEC approval for Ethereum ETFs in May.
Still, Fidelity Investments’ recent move to amend its filing suggests that these spot Ethereum ETF applicants are doing their best to maintain hope.
Source: https://cryptobenelux.com/2024/03/20/fidelity-wijzigt-aanvraag-voor-ethereum-etf-met-staking/
