Fidelity Includes Staking In Spot Ethereum ETF Application

by Murtuza Merchant, Benzinga Staff Writer
March 27, 2024 2:35 PM | 2 min read | Make a Comment
Zinger Key Points
  • Fidelity's Ethereum Fund wants to offer shares on the CBOE, expanding Ethereum's accessibility to a wider investor base.
  • The potential approval and impact of Ethereum ETFs will be a key discussion point at Benzinga's Future of Digital Assets event.

Fidelity Investments filed with the U.S. Securities and Exchange Commission Wednesday for a spot Ethereum ETF.

What Happened: The S-1 filing, which includes staking capabilities, could be a significant development for Ethereum ETH/USD investors seeking a regulated way to gain exposure to the world’s second-largest cryptocurrency.

The development comes on the heels of the successful launch of spot Bitcoin ETFs in the U.S. earlier this year.

Fidelity was among the first 11 issuers to receive approval for a Bitcoin ETF, a decision that demonstrably boosted the overall digital asset market. The fund is the Fidelity Wise Origin Bitcoin Fund FBTC.

The price of Bitcoin soared to new highs in March 2024, reaching a record-breaking $73,000.

The arrival of spot Bitcoin ETFs in 2024 triggered a major shift in the digital asset landscape.

As Bitcoin prices surged, many began to speculate on which cryptocurrency would be next.

Ethereum, the leading altcoin, emerged as the frontrunner.

Also Read: AI Revolution Goes Decentralized: $7.5B Token Merger Aims To Challenge Big Tech

Why It Matters: Fidelity’s initial filing for a spot Ethereum ETF took place in November 2023. This move mirrored similar filings from other major investment firms like BlackRock, VanEck and ARK Invest.

Notably, Wednesday’s filing specifies that the Fidelity Ethereum Fund would trade shares on the Chicago Board Options Exchange (CBOE) and include staking functionality.

This staking feature allows investors to earn rewards by holding their Ethereum tokens, potentially increasing their returns.

The evolving regulatory landscape surrounding cryptocurrencies highlights the need for open discussions about asset classification, investor protection and innovation.

These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Coinbase Legal Setback: Court Rejects Motion To Dismiss SEC’s Securities Allegations

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Posted In: CryptocurrencyNewscryptocurrency regulationEthereum ETFFidelitySECStories That Matter
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