TechFlow news: Cynthia Lo Bessette, head of Fidelity Digital Assets, said in a recent interview with The Block that while she is generally satisfied with market responses to Bitcoin and Ethereum ETFs, it remains unclear whether there is demand for ETFs tied to other cryptocurrencies such as Solana.
Lo Bessette believes the SEC may eventually approve ETH ETFs that allow staking of underlying assets, as staking is a key component of the Ethereum ecosystem.
Fidelity is currently discussing with the SEC the possibility of allowing in-kind creation. At present, all BTC and ETH ETFs must be cash-settled.
Fidelity is exploring asset tokenization, with particular interest in stablecoins and tokenized Treasury products. Lo Bessette emphasized that tokenization isn't just about whether an asset can be represented on-chain, but whether it should be—focusing on whether it enables activities not possible in traditional capital markets.
