The asset manager Grayscale Investments has plans to add staking to its proposal exchange traded fund (ETF) of Ethereum in cash. The company filed a preliminary proxy statement on March 19.
The investment giant presented a proposal to investors in a four-item “consent solicitation statement” that includes a creation and redemption process involving cash and the ability to stake Ethereum through the trust. In US preliminary proxy statement, Grayscale highlighted:
The Sponsor believes that having the ability to have the Trust stake the Ethereum held by the Trust in exchange for consideration would allow the Trust to mitigate inflationary pressures resulting from the Ethereum proof-of-stake protocol and thereby preserve the value of the Trust Estate for the ultimate benefit of ETHE shareholders, and would also position the Trust to maintain parity with any similarly situated investment products that provide for the staking from Ethereum.
The move comes as other companies that are also competing for a spot Ethereum ETF have added the staking feature to their proposals.
Fidelity Integrates Staking Feature into Its Ethereum Spot ETF
In a strategic move, the Fidelity Investments updated its previous filing for an ETF (exchange-traded fund) of spot Ethereum, now incorporating the innovative staking feature.
This change comes after the Ethereum network transitioned to the Proof of Stake consensus mechanism, where participants who choose to lock their coins are rewarded with ETH, contributing to the security of the network. This inclusion by Fidelity points to an evolution in the way investors can interact with cryptoassets, emphasizing the potential for passive income through staking.
Fidelity is not giving up on Ethereum ETFs and is not giving up on SEC, allowing them to stake within the ETF. Our baseline scenario is still that they will not be approved.”
At the time of publication, the ethereum price it was quoted at US$3.353,56 with an increase of 2.4% in the last 24 hours.
