Fidelity revises its Ethereum ETF proposal to encompass staking.

Financial services giant Fidelity is seeking permission to use a portion of the Ether (ETH) held by its proposed Ether exchange-traded fund (ETF) to generate additional income for investors. In a filing to the United States Securities and Exchange Commission (SEC) on March 18, Fidelity stated that if the ETF is approved, the fund would stake an undisclosed amount of its assets through trusted staking providers. Fidelity did not disclose the specific staking provider, but there are several options available in the market, including Lido DAO, RocketPool, and StakeWise. The news briefly caused a 6% spike in the price of Lido DAO, but it quickly fell back to its former levels. However, Lido DAO has experienced a 27% decline in the last week due to a wider pullback in the Ether ecosystem. Fidelity is one of eight fund issuers waiting for SEC approval for their Ether ETF applications. If all eight ETFs are not approved by May 23, the issuers will need to refile their applications at a later date. The likelihood of a spot Ether ETF approval by May 23 is currently estimated to be at 35%.