Fidelity Omits Staking From Spot Ethereum ETF Proposal 

Amid growing speculation about the potential approval of spot ethereum exchange-traded funds (ETFs), Fidelity Investments has revised its ether ETF filing, omitting all staking features previously included in the proposal. This update follows reports that ETF issuers were allegedly instructed to revise their 19b-4 filings with the U.S. Securities and Exchange Commission (SEC).

Fidelity Alters Ethereum ETF, Excludes Staking

In a filing updated on May 21, Fidelity amended its ethereum ETF proposal, removing all references to the potential use of the underlying ether for staking. Fidelity’s ETH-based ETF first proposed such an inclusion last March. However, it was not the first to eliminate the staking feature; Ark Invest made a similar amendment to its proposal last week. Vaneck’s strategy advisor, Gabor Gurbacs, noted on X after Fidelity’s amendment that other issuers are likely to follow suit.

“Fidelity amended its S-1 Ethereum ETF registration statement, removing “staking rewards” from the filing. Others will follow,” Gurbacs said. “Why? Locked up coins are a no go for liquid funds. It’s not ‘rewards,’ it’s yield. Voting makes the underlying a security.”

It is presumed that the SEC might classify staked ethereum as a crypto security. Some individuals welcomed this move, believing that ETFs could otherwise wield excessive voting power over the ETH network. “That’s actually the best news for the whole Ethereum network,” one individual replied to Gurbacs. “Way too much voting power would have been in the hands of the ETF owner. Nobody is talking about this,” the person added.

What do you think about Fidelity removing staking from its ether-based ETF proposal? Share your thoughts and opinions about this subject in the comments section below. #Write2Earn