Financial services giant Fidelity plans to stake a part of the ETH if its spot Ethereum exchange-traded fund (ETF) application gets approved.
This would allow investors in the ETF to earn additional income from staking rewards.
In an amendment to its ETF application filed with the U.S. Securities and Exchange Commission (SEC), Fidelity stated that it may stake part of the fund’s assets through one or more staking providers.
Fidelity did not disclose which staking providers it would use.
See Also: Spot Ethereum ETFs Approval Can Push ETH To $8,000 By December: Standard Chartered
Staking is a process that allows cryptocurrency holders to earn rewards by locking up their coins. Staking helps to secure the blockchain network and validate transactions.
Fidelity’s move follows similar announcements from other fund issuers, including Ark 21Shares and Franklin Templeton.
All three firms are seeking to launch spot Ether ETFs that would allow investors to gain exposure to ETH without having to buy and store the cryptocurrency themselves.
The SEC has yet to approve any spot Ether ETFs.
However, Fidelity’s application is one of eight that are currently under review by the agency.
The SEC has a final deadline of May 23 to approve or deny these applications.
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Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.