Investment Giant Complies with SEC's Ethereum Request: Here are the Details

Investment company Fidelity Investments has updated its application to establish a spot Ethereum ETF in the United States.

Fidelity today filed an updated version of its S-1 filing for its spot Ethereum ETF, according to U.S. Securities and Exchange Commission (SEC) filings.

According to current information, the Fidelity Ethereum Fund, which Fidelity plans to establish, will not be involved in the proof-of-stake mechanism in the Ethereum network and will not use the Ethereum coins in the fund for staking purposes.

In its application to the SEC at the end of March, Fidelity noted that some of the ETH held in the fund could be used for staking purposes.

Ethereum price followed the SEC's request for exchanges to update their 19b-4 filings for the ETF. ETH price rose 20% after the idea that the funds would be approved grew stronger.

On the one hand, the SEC has not yet made a clear decision on whether Ethereum is a commodity or a security. Some analysts argue that Ethereum itself is a commodity; He thinks that ETHs used for staking purposes can be considered as securities.