The race is on for the first US exchange-traded fund (ETF) to directly hold Ethereum (Ether). Asset manager Fidelity just reshuffled its cards, amending its application with the Securities and Exchange Commission (SEC). The key change? No staking for the Ether in this ETF.

This update follows whispers of a shift in the SEC's stance on Ether ETFs, possibly due to some political nudges. The commission is reportedly asking ETF issuers to revise their paperwork, with a decision deadline looming on May 23rd for VanEck's proposal.

Analysts are cautiously optimistic. While the odds of approval for the initial filing (19b-4) have climbed to 75%, the final hurdle – the S-1 registration – could take months.

Here's the snag: liquidity concerns and the SEC's past classification of Ether as a security cast a shadow. A rejection could push back launch dates to late 2024 or even 2025.

The silence from the SEC is also deafening. Unlike the active back-and-forth with issuers before approving Bitcoin ETFs, there's been radio silence on Ether. This has many, including Bitwise's general counsel, bracing for a potential disapproval order.

So, will Ether ETFs finally see the light of day in the US? The coming weeks will be telling. Investors are waiting with bated breath to see if the SEC gives Ether the green light to shine in a US ETF.