Financial services giant Fidelity plans to stake a part of the ETH if its spot Ethereum exchange-traded fund (ETF) application gets approved.
Financial services giant Fidelity plans to stake a part of the ETH if its spot Ethereum exchange-traded fund (ETF) application gets approved. This would allow investors in the ETF to earn additional income from staking rewards.
In an amendment to its ETF application filed with the U.S. Securities and Exchange Commission (SEC), Fidelity stated that it may stake part of the fund's assets through one or more staking providers. Fidelity did not disclose which staking providers it would use.
Staking is a process that allows cryptocurrency holders to earn rewards by locking up their coins. Staking helps to secure the blockchain network and validate transactions.
Fidelity's move follows similar announcements from other fund issuers, including Ark 21Shares and Franklin Templeton. All three firms are seeking to launch spot Ether ETFs that would allow investors to gain exposure to ETH without having to buy and store the cryptocurrency themselves.
The SEC has yet to approve any spot Ether ETFs. However, Fidelity's application is one of eight that are currently under review by the agency. The SEC has a final deadline of May 23 to approve or deny these applications.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
