Fidelity Investments has amended its application for a spot Ether (ETH) exchange-traded fund (ETF) to include an option for staking, aiming to offer additional income to clients and potentially increase the chances of approval by the Securities and Exchange Commission (SEC). Despite skepticism from some market observers about the likelihood of approval for Ethereum-based ETFs, particularly those involving staking, Fidelity's strategy could be a tactical play to negotiate with the SEC. By proposing staking, Fidelity might be aiming to give the SEC a concession point, which could facilitate the ETF's approval. The amended 19b-4 filing also includes a more in-depth analysis on the correlation between ETH spot and futures markets, referencing the approval of a spot Bitcoin ETF as a precedent, with industry insiders bullish on a May 23rd approval. This development has sparked discussions among industry insiders about the SEC's stance on cryptocurrency ETFs and the potential impact on the Ethereum market.
So let's say you are a rational actor that is trying to get an ETH ETF through and tries to max out revenues. But let's assume for illustrative purposes that it seems like the SEC is hell bent on rejecting it, like it was for BTC, which means this will need in any case to go to…
Ether ETFs likely won't get approved by @SECgov in May, Bloomberg's @JSeyff says. @HeleneBraunn reports https://t.co/PXKvFtTmAY
i'm not going to try and call it definitively but all i'll say there is not enough cope on this site nor in the entire world if the Ethereum ETF gets approved in May here's another issuer updating their filing with ETH staking https://t.co/U4TsHX0QZh
Imagine thinking the ETH ETF isn’t getting approved https://t.co/IWWHRSlLYC
Fidelity, a financial services behemoth, is seeking approval to stake a portion of the Ether held by its proposed spot Ether exchange-traded fund (ETF) in order to offer additional income to clients https://t.co/f6aBV75K1S
Adding staking to ETH ETF application is a smart tactical play from issuers. It gives the SEC a way "to save face" by enabling them to stand their ground on minutiae (like asking to remove staking) while still allowing the ETF. Similar to "in-kind vs cash" battle for BTC ETFs. https://t.co/P6EsiiAXjr
Amended 19b-4 filed on Fidelity spot ether ETF… Includes more in-depth analysis on correlation b/w eth spot & futures markets (assume getting feedback this is important issue). Also references spot btc ETF approval. Here’s money page IMO. Issuers not gonna let SEC off hook. https://t.co/Bo4rCKdYbW
While I am bullish on a May 23rd approval for the ETH ETFs, I don't think that they'll be staked ETFs out of the gate. This may be a "bargaining" play from Fidelity in order to force the SEC to approve the ETH ETFs but give the SEC a "win" by removing the staking part. https://t.co/ov1Kz7Q7Rt
Fidelity wants to be denied so they can come back later & remove the staking option or (bear with me)…there’s a concern that if the funds the ETF holds aren’t staked it might impact ETH as an asset? Assuming the ETF proves to be as popular as BTC spot https://t.co/xA7BzjCOTl
FIDELITY ADDS RESTAKING TO THEIR ETH ETF APPLICATION IN AMENDMENT Source: the future https://t.co/Rl2FDPXERY
Fidelity not giving up on #Ethereum ETFs and not giving up on SEC allowing them to Stake within the ETF. Our base case is still that these aren't gonna be approved https://t.co/yxSLsBbi2C https://t.co/6ynFvBrvoo
Surely they would add something to the $ETH ETF that would increase their chances of being denied. Because ETF issuers are in the business of not getting their ETFs approved. Surely It makes perfect sense🤡 https://t.co/3DvrvyDtRy
fidelity adding staking to their spot eth etf application is just more affirmation that coinbase won the case