Cboe BZX Exchange has submitted a proposal to the US Securities and Exchange Commission (SEC) to enable staking for the Fidelity Ethereum Fund.
This proposal aims to allow the fund to stake its Ethereum holdings, potentially increasing investor returns. If approved, Fidelity’s Ethereum Fund would become one of the first US ETFs to incorporate staking.
Staking involves locking up cryptocurrency to support a blockchain’s operation, specifically within Ethereum’s proof-of-stake system.
By staking tokens, validators help secure the network, process transactions, and earn rewards in the form of additional tokens. This enables investors to receive staking rewards without dealing with technical challenges.
