8 months ago
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Fidelity, a financial services behemoth, is seeking approval to stake a portion of the Ether held by its proposed spot Ether exchange-traded fund (ETF) in order to offer additional income to clients.
In a 19b-4 amendment submitted to the United States Securities and Exchange Commission on March 18, Fidelity stated that if the ETF is approved, the fund will stake an undisclosed amount of its assets through one or more trusted staking providers.
The document states, “The Sponsor may, from time to time, stake a portion of the Fund’s assets through one or more trusted staking providers, which may include an affiliate of the Sponsor.”
Fidelity did not name any specific stake providers. Several Ether staking solutions are available now, including Lido DAO, RocketPool, and StakeWise. Following the announcement, Lido, the Ethereum network’s staking protocol, surged 9% to $2.64 before dipping back to $2.32.
Fidelity’s move to file for an Ethereum ETF back in November placed it among other potential issuers like BlackRock, Ark Invest, and Grayscale, intensifying the race to launch the first Ethereum ETF. With the SEC’s final deadline looming on May 23 for all eight ETFs filed by Van Eck, the pressure mounts for approval.
Analysts, including Bloomberg’s ETF expert Eric Balchunas, currently estimate the likelihood of a spot Ether ETF being approved by this deadline at just 35%, citing a lack of precedential signs that were observed before the approval of spot Bitcoin ETFs in January.
Meanwhile, Fidelity’s Wise Origin Bitcoin Fund (FBTC) is already achieving significant success as the fifth most popular ETF, drawing approximately $6.9 billion in investments since its launch in January, the financial giant’s foray into Ethereum ETFs—with the added layer of staking—promises to further cement its position as a leading innovator in the digital asset space.
