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Fidelity Slashes Staking For Ethereum ETF In Latest S-1 Amendment – Crypto News

Published

1 year ago

May 21, 2024

Dripp

Fidelity has submitted an amended S-1 application to the United States Securities and Exchange Commission (SEC) for its proposed Spot Ethereum ETF. This development comes amid increasing anticipation surrounding the potential approval of these ETFs on May 23. In addition, it may boost the approval odds for Ether ETFs.

Fidelity Amends Spot Ethereum ETF S-1 Filing

The updated application clarifies that the ETF’s underlying Ether (ETH) tokens will not be staked. This move addresses concerns related to the security and regulatory implications of staking activities. For context, the S-1 filing is a mandatory registration document required by the SEC for launching publicly traded securities in the U.S. Hence, it ensures transparency and compliance with federal regulations.

This amendment follows recent reports indicating that the SEC may have reversed its stance on Spot Ethereum ETFs. Allegedly, political pressures have influenced the SEC’s approach. The agency has hence led to requests for issuers to revise their 19b-4 filings, which detail the operational and procedural aspects of the proposed ETFs.

The next significant date in this regulatory process is May 23, the deadline for the SEC to make a decision on VanEck’s Spot Ethereum ETF proposal. Moreover, market sentiment regarding the approval of these ETFs has shifted considerably.

Hence, Eric Balchunas, a senior ETF analyst at Bloomberg, has notably increased the probability of the SEC approving the 19b-4 form for these products from 25% to 75%. This heightened optimism reflects growing confidence within the financial community about the SEC’s eventual approval of Spot Ethereum ETFs. Furthermore, the latest step by Fidelity hints at a favorable outcome since removing the staking feature could influence the SEC’s decision positively.

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