Fidelity Files for Ethereum Spot ETF with Staking Option

Fidelity Investments, managing $4.5 trillion in assets filed an S-1 Form with the SEC for a spot Ethereum exchange-traded fund (ETF), complete with staking capabilities. 

Following the triumph of bitcoin ETFs, industry observers anticipated an Ethereum offering from major players like Fidelity. The asset manager initially filed for a Spot Ethereum ETF in November of the previous year, joining the ranks of firms like BlackRock, VanEck, and ARK Invest. 

Fidelity's Ethereum ETF aims to issue shares that will trade on the Chicago Board Options Exchange (CBOE), offering investors exposure to Ethereum's potential upside while incorporating staking features. 

The asset manager's venture into Ethereum ETFs follows the success of spot bitcoin ETFs earlier this year. In January, after a prolonged wait, the SEC greenlit spot bitcoin ETFs, with Fidelity being among the pioneering 11 issuers. 

The approval of bitcoin ETFs has proven to be a game-changer for the digital asset market, setting the stage for broader institutional adoption.

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Ethereum Spot ETF Approval Uncertain

Despite growing anticipation, the path to an Ethereum ETF remains uncertain. Reports indicate that the SEC has initiated legal proceedings that could impact Ethereum's security status, adding obstacles to the ETF approval process. 

Additionally, market dynamics have shifted, with Crypto market maker GSR revising its estimate of a spot Ether ETF approval in May to a mere 20%, down from the earlier estimate of 75% in January.