The Chicago Board Options Exchange has submitted a proposal to the U.S. Securities and Exchange Commission seeking authorization for staking activities associated with the Fidelity Ethereum Fund.
This move is designed to allow the fund to stake its Ethereum (ETH) assets, which could increase returns for investors. Staking means dedicating crypto assets to help sustain the operations of a blockchain network.
In the proof-of-stake mechanism utilized by Ethereum, validators are chosen based on the quantity of tokens they stake, contributing to the security of the network and the processing of transactions. Participants receive rewards, often in the form of additional tokens, as compensation for their involvement.
Following this announcement, Ethereum’s price saw a favorable shift, rising to $1,960.
If the proposal is greenlighted, the Fidelity Ethereum Fund would be among the inaugural ETFs in the United States to incorporate a staking feature, offering investors a means to earn staking rewards without the need to handle the technical intricacies themselves.
Bitcoin Suisse has indicated that Ethereum-staking ETFs could surpass Bitcoin ETFs in performance and anticipates that major financial institutions will launch institutional rollups on the Ethereum network.
Furthermore, Bitcoin Suisse forecasts that the current crypto bull market will extend into 2025, predicting that Bitcoin (BTC) could soar to a new all-time high exceeding $180,000.