Fidelity seeks SEC approval for Ethereum staking on $898M FETH
Fidelity Investments has asked federal regulators for permission to put its Ethereum exchange-traded fund to work. In a filing submitted to the US Securities and Exchange Commission, the asset manager laid out a plan for Fidelity Ethereum staking inside the Fidelity Ethereum Fund, known by its ticker FETH, a move that would let the $898 million fund earn rewards from the very ETH it already holds instead of leaving those coins idle in cold storage.
Key takeaways
- Fidelity filed with the SEC on Aug. 11 to add staking to the Fidelity Ethereum Fund (FETH), a spot ETF holding roughly $898 million in assets.
- FETH could stake up to 100% of its Ether under normal conditions, keeping only whatโs needed for redemptions, expenses and liquidity.
- The fund would keep 85% of gross staking rewards, with 15% split among the sponsor, custodians and node operators, and plans quarterly cash payouts that are not guaranteed.
- Fidelity named Blockdaemon, Figment and Galaxy Digital Trading Cayman as intended node operators for the staking program.
- Grayscale and BlackRock already run staking-enabled Ether ETFs, while Bitwise withdrew a similar proposal in September 2025.
Fidelity Proposes Staking Addition to Fidelity Ethereum Fund
Fidelityโs amended registration statement, submitted to the SEC on Aug. 11, would let FETH generate yield directly from Ethereumโs proof-of-stake network rather than simply tracking the price of ETH. The change formally brings Ethereum ETF staking rewards into a fund that, until now, has functioned purely as a passive price-tracking vehicle.
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