The Cboe BZX Exchange, Inc. has proposed a rule change to the Securities and Exchange Commission (SEC) to allow the Fidelity Ethereum Fund to stake ether, the cryptocurrency of the Ethereum network. Staking involves holding and locking ether in the blockchain to support operations like validating transactions and securing the network; in return, participants may earn rewards. This proposal is intended to help the fund offer better returns to investors by allowing for staking rewards, which can also enhance the Ethereum blockchain's security and functionality. The SEC is seeking public comments on this proposed rule change.
Simple Explanation
The Cboe BZX Exchange wants to let a Fidelity Fund use its Ethereum coins in a way that helps make the computer network safer and stronger, and in return, the fund could earn extra money. The SEC is checking if this is a good idea and wants people to share what they think about it.