• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Fidelity Proposes Staking-Enabled Ethereum ETF in SEC Filing

user avatar

by Giorgi Kostiuk

a year ago


Key Points
  • Fidelity has applied to the SEC for approval to launch an Ether (ETH) ETF.
  • If approved, the ETF would enable Fidelity to stake some of their ETH holdings.

Fidelity has filed an S-1 application with the SEC to create an Ether (ETH) ETF. Upon approval, Fidelity will be able to stake a portion of their ETH.

Fidelity’s Proposed Ethereum ETF

The proposed ETF from Fidelity would be traded on the Cboe BZX Exchange. Fidelity Digital Asset Services, in connection with sponsor FD Funds Management, would serve as the custodian for the trust’s ETH. As per the S-1, the trust intends to implement a staking program through one or more staking infrastructure providers. However, this decision carries certain risks as detailed in the application, such as potential loss, including 'slashing' penalties and liquidity risks during the staking process. Moreover, staking rewards would be considered as income for the fund, resulting in taxable events for investors even if no distribution is made by the Trust.

The application does not outline the ETF's expected fees. In case of a fork, the custodian will determine which chain the fund will support. The form also mentions various risks associated with the ETF, including regulatory uncertainties in the United States and globally. Termination of the trust could occur due to various reasons, including regulatory intervention from the SEC or the U.S. Commodity Futures Trading Commission. The SEC's investigation into the Ethereum Foundation might impact the approval chances for the spot ETH ETF, alongside political opposition. The Ethereum blockchain is vulnerable to a 51% attack, where an attacker gains control through a majority vote. Analysts believe that introducing a spot ETH ETF could lessen DAOs' influence but introduce new concentration risks based on how ETFs distribute their ETH among stakers. The SEC has extended the approval deadline for other ETH ETFs to May 23, with eight applications awaiting a decision.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

BitMine Shifts Focus to Ethereum, Acquiring 163,142 ETH

chest

BitMine Immersion Technologies has completed a $500 million Ethereum acquisition, signaling a strategic shift to Ethereum.

user avatarGiorgi Kostiuk

Shiba Inu on the brink of 20% rise, Bitcoin triggers liquidation, XRP near $3 breakout

chest

This article discusses the latest movements in the cryptocurrency market: Shiba Inu may rise by 20%, Bitcoin triggers liquidations, and XRP approaches the $3 key level.

user avatarGiorgi Kostiuk

Bitcoin Acquisition: How Strategy Strengthens Its Market Position

chest

Strategy's ongoing Bitcoin accumulation signals strong institutional interest and impacts market trends.

user avatarGiorgi Kostiuk

Satoshi-era Bitcoin Whale Moves 20,000 BTC Amid Market Rally

chest

After transferring 80,000 BTC previously, the Bitcoin whale is back, moving 20,000 BTC alongside Bitcoin's price surge.

user avatarGiorgi Kostiuk

China's GDP Growth of 5.3% in 2025: Economic Trends Overview

chest

China's GDP increased by 5.3% in the first half of 2025, boosting market confidence, while its impact on the crypto industry remains limited.

user avatarGiorgi Kostiuk

Crypto Market Awaits $1.5B Token Unlocks This Week

chest

Major token unlocks this week could significantly impact market dynamics for various cryptocurrencies.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.