Fidelity Revises Ether ETF Filing, Excludes ETH Staking
Fidelity, a prominent investment management company, has made significant changes to its application for a spot Ether exchange-traded fund (ETF) with the United States Securities and Exchange Commission (SEC). The updated S-1 filing from Fidelity now excludes staked Ether from its ETF, in line with SEC registration requirements for US financial products.
This decision comes amidst reports that the SEC, possibly under political pressures, is reevaluating its stance on spot Ether ETFs and has requested issuers to update their 19b-4 filings.
The upcoming key date to watch is May 23, when the SEC will make a decision on VanEck’s Ether ETF proposal. Eric Balchunas, a senior ETF analyst at Bloomberg, has raised the approval chances for the 19b-4 form to 75%. However, Bloomberg analyst James Seyffart cautioned that S-1 approvals are also necessary, which could delay the launch of a live ETH ETF by weeks to months.
The SEC’s relationship with Ether has been complex, especially after Ethereum’s transition to a Proof-of-Stake (PoS) mechanism. SEC Chair Gary Gensler has hinted that cryptocurrencies allowing staking could be classified as securities, sparking debates on the regulatory status of staked Ether.
Alex Thorn, head of research at Galaxy Research, suggested that the SEC might classify staked Ether as a security despite potential approvals for Ether ETFs.
Fidelity initially submitted its S-1 application on March 27, intending to stake part of the fund’s Ether. However, the decision to exclude staking from the revised filing indicates Fidelity’s efforts to comply with regulatory expectations and mitigate the risks associated with staking.
In related news, VanEck’s CEO Jan van Eck has expressed skepticism about the approval of the firm’s spot ETH ETF.
Overall, these developments highlight the evolving regulatory landscape surrounding cryptocurrencies and ETFs, as companies navigate the complexities of offering financial products tied to digital assets.
