Fidelity Makes a Critical Update to Spot Ethereum ETF!

• In November 2023, the American investment management firm applied to the SEC to list an Ethereum spot ETF product.
• The asset management company plans to stake some of the fund’s assets through one or more reliable staking providers.
• Given the regulator’s continuous extension of the decision date, it’s uncertain whether the SEC will adhere to the next deadline.

Major asset management firm Fidelity has garnered attention by making changes to the spot Ethereum ETF: Here are the details of the ETF filing!

Update on Fidelity’s Spot Ethereum ETF

The ongoing delay by the U.S. Securities and Exchange Commission (SEC) regarding the spot Ethereum ETF hasn’t seemed to deter Fidelity Investments, as the firm has now added the option to stake to its application.

In November 2023, the American investment management firm applied to the SEC to list an Ethereum spot ETF product. This made it the 7th firm to target the product following companies like BlackRock, Hashdex, Invesco, and Grayscale Investments.

Normally, the SEC is expected to make a decision on whether to change the rules within 45 days from the date it’s made available for public comment. However, the agency’s decision didn’t come as expected even after a public comment request was issued in the first week of December. Instead, the SEC extended its decision on Fidelity’s spot Ethereum ETF until March 5th, announcing a 45-day extension.

The expected date has already passed, and the SEC hasn’t made any decision yet on Fidelity’s spot ETH ETF or any applicant’s ETF. While awaiting the SEC, Fidelity decided to add staking for cryptocurrency. Specifically, the asset management company plans to stake some of the fund’s assets through one or more reliable staking providers.

“When considering any staking activities the fund may participate in, the fund would receive certain ether tokens’ network rewards, which may be treated as income in exchange for the services provided by the fund,” Fidelity stated in the amended spot Ethereum ETF filing.

Deadline Approaches

Meanwhile, Ark Invest and 21Shares are awaiting decisions on their joint spot Ethereum ETFs until May. Additionally, industry observers closely watch the decisive date of May 23rd for the product.

Given the regulator’s continuous extension of the decision date, it’s uncertain whether the SEC will adhere to the next deadline. Leading industry players like JPMorgan doubt the likelihood of SEC approval for Ethereum ETFs in May.

Nevertheless, Fidelity Investments’ modification to its application is the latest move indicating that these spot Ethereum ETF applicants are doing their best to keep hope alive.