Fidelity Drops Staking Plans in Updated Ether ETF Filing

Annualized yields on ether staking are nearly 3% as of Tuesday, data from popular staking service Lido shows.

AccessTimeIconMay 21, 2024 at 11:40 a.m. UTC
Updated May 21, 2024 at 6:22 p.m. UTC
  • Fidelity has amended its S-1 filing with the SEC, indicating that it will not stake ether in its proposed spot exchange-traded fund.
  • Staking involves locking cryptocurrencies to support blockchain operations in return for rewards, with annualized yields on ether staking currently around 3%.

An S-1 update filed to the U.S. Securities and Exchange Commission early Tuesday showed that Fidelity has rolled back plans to stake ether (ETH) holdings in its proposed spot exchange-traded fund (ETF).

In previous filings, the firm said it intended to “stake a portion of the trust’s assets” to “one or more” infrastructure providers. However, it clearly stated in Tuesday’s update that it would “not stake the ether” stored with the custodian.

Staking is the process of locking certain cryptocurrencies for a set period of time to help support the operation of a blockchain, in turn, for a reward. These rewards are largely considered passive income among crypto traders.

Data from popular staking service Lido shows that annualized yields on ether staking were nearly 3% as of Tuesday.

CoinDesk reported on Monday, that the U.S. Securities and Exchange Commission (SEC) asked aspiring ether exchange-traded fund exchanges to update 19b-4 filings ahead of a key deadline this week – boosting expectations of an ETH ETF.

Edited by Parikshit Mishra.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.

Read more about