Fidelity, a well-known player in the financial services industry, has plans to utilize a portion of Ether held within their proposed spot Ether exchange-traded fund (ETF) to offer investors an added source of income. This move is aimed at enhancing the returns for investors in the ETF.

On March 18, Fidelity submitted a 19b-4 amendment to the United States Securities and Exchange Commission to invest an undisclosed amount of assets if the ETF is approved, through one or more trusted staking providers. This bold move demonstrates Fidelity’s unwavering commitment to exploring new investment opportunities and potentially diversifying its portfolio.

Fidelity, the multinational financial services corporation, has not yet named the specific staking provider they will be using for Ether staking. It is worth noting that there are several Ether staking providers currently available in the market, including Lido DAO, RocketPool, and StakeWise. However, Fidelity has not yet confirmed which provider they will choose.

Following the news of Fidelity’s decision to enter the Ether staking market, the price of Lido DAO, which is currently the largest liquid Ethereum staking provider, briefly rose by 6% from $2.48 to $2.56 before returning to $2.49, according to TradingView data.

It is expected that Fidelity’s entry into the market will attract more institutional investors to Ether staking and thus, lead to increased demand for Ether staking providers.

Read More: https://www.blockmagic.in/cryptocurrency/coins-tokens/bitcoin-etf-outflows-trigger-investor-caution/