A few months after securing approval for its Bitcoin-ETF product, renowned financial service provider, Fidelity has filed a spot Ethereum exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission. In a Wednesday filing with the SEC, the firm wants to offer Ethereum spot ETF products with staking included.
The document describes Fidelity’s Ethereum spot ETF as a product that will issue shares of beneficial interest. Also, the firm added that the product will be listed and traded on the Cboe BZX Exchange Inc.
Also known as the Trust, the Fidelity Ethereum Fund will also obtain staking rewards in form of ether which may be treated for federal income tax purposes as income to the trust. Furthermore, Fidelity Digital asset services will also maintain exclusive possession and control of the asset key of the staked ether.
Earlier, Fidelity announced plans to lay off more than 700 of its employees. However, this figure represents just a percent of the total workforce of the renowned company. Don’t forget that it has 74,000 employees as of January 2024. That said, the layoff is effective from March 31, 2024.
Fidelity aiming to launch its Ethereum ETF product in November
Fidelity looks forward to launching the product in November. Its approval by the SEC will give investors the opportunity to stake some of the assets. At press time, other firms that are planning to dive into the world of Ethereum spot ETFs include BlackRock, Ark Invest, Grayscale, and many more.
Meanwhile, this development comes barely a few months after the SEC approved Bitcoin ETF filings by Fidelity and ten other issuers. The regulatory approval further positions Bitcoin for mainstream adoption, making it possible for more institutional investors to dive into the world of crypto. More so, the ripple of excitement that greeted the development helped Bitcoin to attain a new all-time high on the price chart.
Then, the SEC warned that the approval does not mean it endorses or supports Bitcoin and therefore cautions investors while trading.
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