According to an S-1 update that Fidelity submitted early on Tuesday, the U.S. Securities and Exchange Commission, the company has retracted its plans to put Ethereum (ETH) holdings in its proposed exchange-traded fund (ETF).
The company stated in earlier filings that it planned to give “one or more” infrastructure providers “a portion of the trust’s assets.” But it made it quite plain in the statement on Tuesday that it would “not stake the ether” that was kept with the custodian.
Staking is the practice of locking down specific cryptocurrency for a predetermined amount of time in exchange for a payout that supports the blockchain’s operation. For most cryptocurrency traders, these benefits are seen as passive income.
According to data from well-known staking platform Lido, as of Tuesday, annualised yields on ether staking were close to 3%. Expectations for an ETH ETF have increased after it was reported on Monday that the U.S. Securities and Exchange Commission (SEC) requested that prospective exchanges for ether exchange-traded funds revise their 19b-4 files before a significant deadline this week.