The financial giant Fidelity has sent a modified Ethereum (ETH) exchange-traded fund (ETF) proposal, adding staking to its application.
The financial giant Fidelity has sent a modified Ethereum (ETH) exchange-traded fund (ETF) proposal, adding staking to its application.
According to the document, it would be possible to bet a part of the fund’s assets with the help of a trusted betting provider.
Similarities to Bitcoin ETFs
The amended filing references the approval of multiple spot Bitcoin ETF approvals. The financial giant maintains that it makes sense to greenlight the same product for the largest altcoin due to the high correlation between Ethereum and Bitcoin futures issued by CME.
Since the SEC expects CME surveillance to be useful in helping detect potential cases of fraudulent and manipulative practices, Fidelity says the same reasoning should be applied to detect Ethereum ETFs.
It’s worth mentioning that Fidelity’s Bitcoin ETF has managed to end up among this year’s most popular ETFs so far after attracting nearly $7 billion since its launch in January.
It ranked first alongside BlackRock’s Bitcoin ETF, which continues to break records.
Low approval odds, high price targets
As Guru-Investingreported, Standard Chartered recently made a surprising prediction that the price of Ethereum could hit the $8,000 target if the SEC approved a spot Ethereum ETF in May.
However, according to several experts, such a scenario remains unlikely. Political pressure appears to be the main impediment right now, with the SEC facing some backlash in Congress following the success of spot Bitcoin ETFs.
There are different opinions on the possible impact of an Ethereum spot ETF. Investment firm VanEck, for example, believes that a spot ETF could end up being an even bigger deal than similar Bitcoin products. However, Bloomberg senior analyst Eric Balchunas recently downplayed the impact of such an ETF, likening it to an opening act trying to follow a headliner.
