Fidelity Seeks SEC Approval to Add Staking to FETH

Fidelity filed with the U.S. Securities and Exchange Commission on Tuesday to add staking to the Fidelity Ethereum Fund (FETH), its spot Ether exchange-traded fund. The preliminary prospectus allows the fund to stake up to 100% of the Ether it holds under normal conditions, excluding amounts reserved for redemptions, expenses and liquidity needs.

The filing states the fund would retain 85% of any staking rewards and allocate 15% to fees for staking services. Staking is expected to begin “as soon as practicable” after the prospectus date, and the fund plans quarterly cash distributions of staking rewards, though those payouts are not guaranteed. The prospectus remains subject to change before the SEC declares the registration statement effective.

Since its July 2024 launch, FETH recorded roughly $2.13 billion in cumulative net inflows as of Aug. 11. Ahead of the U.S. market open on the day following the filing, the ETF was among the stronger pre-market performers in the group of Ether funds, trading up about 2.4%.

Other U.S. issuers have pursued or implemented staking for spot Ether products. Grayscale enabled staking in a spot Ether product in October 2025, and BlackRock launched a separate staked Ether product in February 2026. Another issuer previously proposed staking for its Ether ETF but later withdrew the plan.

Staking involves locking Ether to help secure the Ethereum network and earn rewards that are paid to participants. For funds, staking can provide additional yield, but reward levels vary and distributions can be affected by network conditions, validator performance, fees and the fund’s own liquidity and redemption needs. The prospectus highlights those variables and notes the staking plan may be revised before the SEC makes the registration effective.