Fidelity, a prominent asset management firm, is making waves in the cryptocurrency world with its proposed spot Ethereum exchange-traded fund (ETF). In a recent amendment to its application, Fidelity expressed its desire for traders to be able to stake their assets upon the approval of the ETF.
Staking, a process where users lock up their assets to help validate transactions on a proof-of-stake blockchain, is gaining popularity in the crypto community. Fidelity plans to stake a portion of the ETF’s assets through trusted providers to generate additional income for users.
The news has already had an impact on the market, with the native token of Lido DAO, the largest Ethereum staking provider, briefly spiking in response. However, analysts are cautious about the approval of spot Ethereum ETFs by the SEC, citing political backlash and other factors.
Fidelity is not alone in its plans to stake a portion of its ether assets, as other ETF applicants like Ark Invest/21Shares and Franklin Templeton have also indicated similar intentions. With Fidelity’s FBTC already managing over $7 billion worth of Bitcoin, the firm’s foray into the world of Ethereum ETFs is sure to attract attention.
Overall, Fidelity’s proposal to stake a portion of its proposed spot Ethereum ETF signals a growing interest in the potential of staking in the cryptocurrency market. Stay tuned for more updates on this developing story.
