Fidelity Investments, which manages $4.5 trillion in assets, has filed an S-1 Form with the SEC for an Ethereum exchange-traded fund (ETF) that includes staking capabilities.
After the success of bitcoin ETFs, many expected major players like Fidelity to offer an Ethereum ETF. The asset manager first filed for a Spot Ethereum ETF in November of the previous year, joining other firms like BlackRock, VanEck, and ARK Invest.
Fidelity's Ethereum ETF aims to issue shares that will trade on the Chicago Board Options Exchange (CBOE), providing investors with exposure to Ethereum's potential upside while incorporating staking features.
The asset manager's move into Ethereum ETFs follows the approval of spot bitcoin ETFs earlier this year. In January, after a long wait, the SEC approved spot bitcoin ETFs, with Fidelity being one of the first 11 issuers.
The approval of bitcoin ETFs has been a significant development for the digital asset market, paving the way for broader institutional adoption.
However, the approval of an Ethereum ETF is uncertain. Reports suggest that the SEC has initiated legal proceedings that could affect Ethereum's status as a security, adding hurdles to the ETF approval process.
Furthermore, market conditions have changed, with Crypto market maker GSR lowering its estimate of a spot Ether ETF approval in May to just 20%, down from the previous estimate of 75% in January.
