Fidelity files with SEC to add staking to Ethereum ETF
Summary
Fidelity filed with the SEC to add staking to its spot Ether ETF, the Fidelity Ethereum Fund (FETH). Under normal conditions, the fund could stake up to 100% of its Ether, minus amounts needed for redemptions, expenses, and liquidity. Fidelity plans to keep 85% of staking rewards, with 15% paid as staking fees, and aims to make quarterly cash distributions, though payouts are not guaranteed. Staking would begin as soon as practicable after the prospectus date, but the proposal can still change before approval. The move brings Fidelity in line with other US Ether products that already offer or are seeking staking, including Grayscale and BlackRock. FETH has taken in about $2.13 billion in cumulative net inflows since its July 2024 launch.
