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The Securities and Exchange Commission (SEC) has reviewed filings for spot Ethereum ETFs from Fidelity and Franklin Templeton with staking capabilities. This move indicates a shift towards accepting cryptocurrency investment products and may pave the way for increased mainstream adoption of Ethereum and other digital assets.
On March 13, 2025, the SEC acknowledged the filings, commencing the formal review process. The proposed ETFs would allow investors to earn staking rewards while holding Ethereum shares. This innovative feature could provide a new avenue for passive income generation in the cryptocurrency market.
Fidelity initially included staking in its March 2024 filing but ultimately launched the ETF without this feature due to regulatory challenges. With the current administration’s pro-crypto stance, Fidelity is revisiting its staking plans and has now filed an amended proposal. Franklin Templeton has also joined the fray by submitting a new filing for a spot Ethereum ETF with staking capabilities.
The SEC’s acknowledgment of these filings signals a significant shift in the regulatory landscape surrounding cryptocurrency investment products. This development could lead to a more open environment for digital assets, allowing investors to participate in the growth potential of the space while earning rewards through staking.
The inclusion of staking in ETFs is an unprecedented move that may reshape the way investors earn yields on their digital asset investments. The prospect of generating passive income through staking is expected to attract a wider range of institutional investors and could increase mainstream adoption of cryptocurrencies.
However, the SEC’s review process will ultimately determine the fate of these proposals. If approved, these ETFs could set a new precedent for cryptocurrency investment products and potentially create a new standard in digital assets trading.
The regulatory agency has also delayed its decision on Cboe BZX Exchange’s request to list options tied to Fidelity’s Ethereum Fund until May 14, 2025. This move is seen as an indication of the SEC’s cautious approach to cryptocurrency-related financial products.
In conclusion, the SEC’s review of these filings marks a significant milestone in the development of regulated crypto investment options.
Source: https://cryptotale.org/sec-reviews-fidelity-franklin-spot-eth-etf-filings-with-staking/
