Key takeaways:
- Fidelity updates its Ethereum ETF application to exclude staking
- Move aims to address regulatory concerns and enhance approval prospects.
Fidelity Investments has made a significant amendment to its S-1 application for a proposed Ethereum spot exchange-traded fund (ETF), submitting an updated filing to the United States Securities and Exchange Commission (SEC).
This move comes ahead of the anticipated SEC decision on May 23, which could potentially approve Ethereum ETFs, including Fidelity’s proposal.
In the revised application, Fidelity clarified that its proposed ETF will not stake the underlying Ether tokens held by the custodian. This decision is aimed at addressing security and regulatory concerns associated with staking activities.
“The Trust will not stake the ether custodied at the Custodian. The Trust will not invest in derivatives,” Fidelity stated in the amended filing.
The firm emphasized that the ETF is designed to provide investors with a cost-effective and convenient way to invest in Ether without the complexities of direct ownership and trading.

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The decision to omit staking from its ETF offering is likely influenced by the SEC’s stance on cryptocurrency staking. In June 2023, the SEC filed a lawsuit against Coinbase for offering staking services, alleging violations of securities laws.
SEC Chair Gary Gensler has previously indicated that staking activities could potentially be classified as securities under the Howey test.
Fidelity’s move to remove staking aligns with regulatory expectations and could pave the way for a smoother approval process.
The SEC has reportedly requested ETF issuers to update their 19b-4 filings, necessary for launching publicly traded securities products in the U.S., indicating a shift in the regulatory approach towards Ether ETFs.
James Seyffart, a Bloomberg ETF analyst, noted that while 19b-4 approvals may happen soon, S-1 approvals could take weeks to months. Despite potential delays, Seyffart remains optimistic that these filings will eventually be approved.
Fidelity’s decision to exclude staking from its proposed Ethereum ETF reflects efforts to align with SEC regulations and improve the approval prospects amidst a shifting regulatory landscape.
As the SEC’s decision date approaches, all eyes are on the regulatory developments that could pave the way for the long-awaited launch of Ethereum ETFs in the United States. Investors and market participants are eagerly awaiting the outcome of the SEC’s deliberations on May 23.