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Fidelity and SEC Discuss Enhancing Ethereum ETF with Staking Options

CBOE has formally requested SEC approval to reintroduce staking features in the Fidelity Ethereum ETF, showcasing a proactive shift in regulatory attitudes under the current political climate. This move comes after Fidelity previously removed staking from its Ethereum ETF proposal in 2024 due to regulatory uncertainties. The updated proposal, if approved, would allow Fidelity’s Ethereum fund to perform staking via third-party services while still managing the asset custody. This change aligns with Ethereum's switch to a proof-of-stake model in 2022, which requires validators to lock in funds to support network security. The integration of staking could herald a new era for U.S. investment funds, embedding deeper involvement in cryptocurrency mechanisms and potentially yielding income through staking rewards. Approval by the SEC could influence the landscape of cryptocurrency ETFs and is keenly awaited by mid-2025, potentially setting new standards for crypto investment strategies in the U.S.