Fidelity files with SEC to add staking to Ethereum ETF
Fidelity plans to add staking to its Ether fund, with 85% of rewards retained by FETH and quarterly cash distributions planned for investors.
Fidelity Investments has submitted a request to the US Securities and Exchange Commission (SEC) to expand its Ether fund, the Fidelity Ethereum Fund (FETH), to include staking capabilities. In its filing with the SEC, the asset manager announced that FETH could potentially stake up to 100% of its Ether, excluding funds reserved for redemptions, expenses, and liquidity needs.
The fund plans to retain 85% of staking rewards, while the remaining 15% will be allocated towards staking fees. Additionally, Fidelity intends to distribute a portion of these rewards to investors on a quarterly basis, though payments are not guaranteed. The asset manager anticipates the introduction of staking "as soon as practicable" after the prospectus date.
Fidelity's decision to add staking to its Ether fund aligns with other major US crypto products, such as Grayscale's recent addition of staking to its spot crypto ETF and BlackRock's launch of the iShares Staked Ethereum Trust ETF. While FETH has yet to launch, it has already attracted significant investor interest, with $2.13 billion in cumulative net inflows since its July 2024 inception. As of Aug. 11, FETH was leading pre-market gains among ETH funds, up 2.4%.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
