Following Fidelity’s revised application for an Ether exchange-traded fund (ETF), which included a proposal to stake “a part” of the fund’s ETH in order to create extra revenue, the price of LDO momentarily rose.
The planned spot Ether exchange-traded fund (ETF) of financial services major Fidelity would allow investors to bet a part of the Ether owned by the fund in order to generate extra revenue.
The ETF will stake an unknown portion of its assets via one or more trusted staking providers, according to a 19b-4 modification filed by Fidelity with the United States Securities and Exchange Commission on March 18.
A particular stakeholder provider was not named by Fidelity. Several Ether staking solutions are available now, such as StakeWise, RocketPool, and Lido DAO.
According to TradingView statistics, the price of Lido DAO, the most liquid Ethereum staking provider, surged 6% from $2.48 to $2.56 in response to the announcement, although it then dropped back down to $2.49.
On the other hand, Lido DAO has dropped 27% in the last week due to the larger decline for Ether and several tokens in its ecosystem.
Currently, the SEC is deciding whether or not to approve the Ether ETF application that eight fund issuers, including Fidelity, have submitted.
Staking some of the Ethereum (ETH) in its planned fund was another addition Ark 21Shares made on February 8th. Just a few days after that, Franklin Templeton joined the spot Ether ETF race, intending to stake some of the ETF’s Ether in order to generate extra money.
It joined other businesses, such as crypto asset management Grayscale, Cathie Wood’s ARK Invest, and the world’s biggest investment company BlackRock, in entering the competition on November 18th.
All eight ETFs on the list of potential issuers will have to reapply at a later date if the SEC does not approve them by May 23, the last deadline set by Van Eck.
Bloomberg ETF expert Eric Balchunas estimated that just 35% of the time will pass before Van Eck’s May deadline for spot Ether ETF certification.
Despite Blachunas’s January prediction of 70% approval probabilities, he warned Cointelegraph that the “radio silence” of the SEC toward potential fund issuers and the political backlash against Chair Gary Gensler were causes for concern over the approval process.
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