HomeCryptoEthereumFidelity revises the proposal of Ethereum ETF omitting the staking

Fidelity revises the proposal of Ethereum ETF omitting the staking

Among the growing speculations about the possible approval of ETFs on Ethereum, Fidelity Investments has updated its Ether ETF proposal, removing all previously included staking features. 

This update follows the news that the United States Securities and Exchange Commission (SEC) has requested ETF issuers to review their 19b-4 documents.

Let’s see all the details below. 

Fidelity: speculation on the approval of Ethereum ETFs without stalking features is growing

As anticipated, in an updated document on May 21, Fidelity has revised its proposal for an ETF on Ethereum, removing all references to the use of the underlying ether for staking.

The initial proposal from Fidelity, presented last March, included this feature. However, Fidelity was not the first to remove staking. Ark Invest had already made a similar change the previous week. 

Gabor Gurbacs, strategic consultant at Vaneck, observed on X that other issuers will likely follow suit, stating:  

“Fidelity has updated its S-1 registration statement for the Ethereum ETF, removing the ‘staking rewards’ from the document. Others will do the same. Why? Locked coins are a hindrance to liquid funds. It’s not about ‘rewards’, but about yield. Voting makes the underlying a security.”

It is presumed that the SEC may classify Ethereum as a cryptographic security. Some individuals have welcomed this move, believing that ETFs could otherwise exert excessive voting power on the ETH network.

An user has indeed replied to Gurbacs as follows: 

“This is actually excellent news for the entire Ethereum network. Too much voting power would have been in the hands of the ETF owner. No one is talking about it.”

A significant transfer of 25,000 ETH on Robinhood fuels speculation

With a significant move, 25,000 ETH have been transferred from an anonymous wallet to the popular trading platform Robinhood. This transfer of value, amounting to almost $92.1 million, has sparked lively speculation and discussions among investors and analysts.

25,000 ETH have been transferred in two transactions, suggesting a targeted and deliberate action. The wallet involved was previously unknown, making it difficult to identify the origin or owner of the funds.

The data tracker crypto Whale Alert has reported two transactions, each involving 12,500 ETH, for a total of about 46 million dollars, moved from the same anonymous wallet to Robinhood.

The reason behind this move remains shrouded in mystery, but speculations are many. An institutional investor or a large fund could be preparing to enter the Ethereum market through Robinhood. 

Institutional interest in cryptocurrencies is growing and such a significant change could indicate preparation for significant trading activity.

However, the transfer could also be attributed to a whale of the cryptocurrencies, an individual or entity that holds significant amounts of cryptocurrency. 

Whales often move their funds on exchanges when they intend to sell them, trade them, or use them for other investment purposes.

It is possible that the owner of the funds is planning a strategic trading operation, anticipating future price movements. Otherwise, the transfer could be aimed at meeting Robinhood’s liquidity needs.

Alessia Pannone
Alessia Pannone
Graduated in communication sciences, currently student of the master's degree course in publishing and writing. Writer of articles from an SEO perspective, with care for indexing in search engines.