Fidelity Investments has updated its Ethereum exchange-traded fund (ETF) application with the U.S. Securities and Exchange Commission (SEC) to include staking. This move follows similar announcements from other fund issuers, indicating a growing trend in the industry. Staking allows cryptocurrency holders to earn rewards by locking up their coins, enhancing network security and operations.
If approved, investors in Fidelity’s ETF would have the opportunity to earn additional income from staking rewards. The amendment to Fidelity’s application states that the fund may stake a portion of its assets through trusted staking providers, although specific providers were not disclosed.
This development underscores the evolving landscape of cryptocurrency investment products, with a focus on providing investors with diverse income-generating opportunities. Fidelity’s decision to include staking in its ETF application aligns with the broader trend of incorporating native blockchain functionalities into traditional financial products.
The SEC currently has multiple Ethereum ETF applications under review, with a final deadline set for May 23. Despite optimism within the industry, approval remains uncertain, with analysts estimating the likelihood of approval at around 35%. Nevertheless, Fidelity’s amendment signals a proactive approach to offering innovative investment solutions in the rapidly evolving cryptocurrency market.
