PANews reported on May 21 that according to market news, Fidelity has modified the S-1 application document for its Ethereum spot ETF, stating that the trust fund's Ethereum "will not be pledged."

As reported this morning, Alex Thorn, head of research at Galaxy, said: The SEC may recognize that ETH itself is not a security, but pledged ETH is a security. Alex Thorn said that the US SEC may try to find a balance between the following two: 'ETH' itself is not a security, but 'pledged ETH' (or pledged ETH as a service) is a security. This is roughly consistent with their various lawsuits and reports on the investigation, and may allow the SEC to approve the Ethereum ETF while maintaining the views they have previously stated and argued. In this case, the SEC may prohibit the ETF from pledging its ETH.