Fidelity revises the proposal of Ethereum ETF omitting the staking
The post Fidelity revises the proposal of Ethereum ETF omitting the staking appeared on BitcoinEthereumNews.com.
Among the growing speculations about the possible approval of ETFs on Ethereum, Fidelity Investments has updated its Ether ETF proposal, removing all previously included staking features. This update follows the news that the United States Securities and Exchange Commission (SEC) has requested ETF issuers to review their 19b-4 documents. Let’s see all the details below. Fidelity: speculation on the approval of Ethereum ETFs without stalking features is growing As anticipated, in an updated document on May 21, Fidelity has revised its proposal for an ETF on Ethereum, removing all references to the use of the underlying ether for staking. The initial proposal from Fidelity, presented last March, included this feature. However, Fidelity was not the first to remove staking. Ark Invest had already made a similar change the previous week. Gabor Gurbacs, strategic consultant at Vaneck, observed on X that other issuers will likely follow suit, stating: “Fidelity has updated its S-1 registration statement for the Ethereum ETF, removing the ‘staking rewards’ from the document. Others will do the same. Why? Locked coins are a hindrance to liquid funds. It’s not about ‘rewards’, but about yield. Voting makes the underlying a security.” It is presumed that the SEC may classify Ethereum as a cryptographic security. Some individuals have welcomed this move, believing that ETFs could otherwise exert excessive voting power on the ETH network. An user has indeed replied to Gurbacs as follows: “This is actually excellent news for the entire Ethereum network. Too much voting power would have been in the hands of the ETF owner. No one is talking about it.” A significant transfer of 25,000 ETH on Robinhood fuels speculation With a significant move, 25,000 ETH have been transferred from an anonymous wallet to the popular trading platform Robinhood. This transfer of value, amounting to almost…
Filed under: News - @ May 22, 2024 5:16 am