Fidelity Seeks SEC Nod to Add Staking to Ether ETF FETH
Fidelity Investments has filed with the US Securities and Exchange Commission to add staking to its spot Ether exchange-traded fund, the Fidelity Ethereum Fund (FETH), according to a Tuesday filing reported by Cointelegraph.
Under the proposal, FETH could stake up to 100% of its Ether holdings under normal conditions, excluding amounts reserved for redemptions, expenses and liquidity needs. The fund would keep 85% of staking rewards, with the remaining 15% allocated to staking fees. Fidelity plans quarterly cash distributions to investors, though the filing notes payouts are not guaranteed.
Fidelity said it expects staking to begin as soon as practicable after the prospectus date. The preliminary prospectus remains subject to change before the registration statement takes effect.
Fidelity joins a growing list of US issuers moving toward staking-enabled Ether products. Grayscale became the first to introduce staking in a US spot crypto ETF in October 2025. BlackRock launched a separate staking product, the iShares Staked Ethereum Trust ETF, in February 2026. Bitwise had also sought to add staking to its Ethereum ETF but withdrew the proposal in September 2025.
According to Cointelegraph, Seeking Alpha contributor Ryne Mauck wrote in May that FETH’s lack of staking left it at a competitive disadvantage relative to staking-enabled funds from Grayscale and BlackRock.
Data from Farside Investors cited by Cointelegraph shows FETH has recorded roughly $2.13 billion in cumulative net inflows since its July 2024 launch. Ahead of Wednesday’s US market open, the fund was leading pre-market gains among Ether ETFs, up 2.4%, according to Yahoo Finance figures referenced in the report.
Based on reporting by cointelegraph.com.
