Fidelity Withdraws Staking Plans in Latest Ether ETF Filing

In an S-1 update filed with the U.S. Securities and Exchange Commission (SEC) early Tuesday, Fidelity revealed that it has removed plans to stake ether (ETHUSD) holdings in its proposed spot exchange-traded fund (ETF).

Earlier filings indicated that the firm intended to "stake a portion of the trust’s assets" through "one or more" infrastructure providers. However, the recent update explicitly states that the ether stored with the custodian "will not be staked."

Staking involves locking up certain cryptocurrencies for a specified period to support blockchain operations, which can yield rewards. Among crypto traders, these rewards are often seen as a form of passive income. According to Lido, a popular staking service, the annualized yields on ether staking were nearly 3% as of Tuesday.

On Monday, CoinDesk reported that the SEC had asked potential ether ETF issuers to revise their 19b-4 filings ahead of a crucial deadline this week, heightening expectations for an ETH ETF.

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