Fidelity files with SEC to add staking to Ethereum ETF
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Fidelity Investments filed with the US Securities and Exchange Commission (SEC) to add staking capabilities to its Fidelity Ethereum Fund (FETH), a spot Ether exchange-traded product. The filing states FETH could stake up to 100% of its Ether, excluding amounts needed for redemptions, expenses, and liquidity, and intends to distribute 85% of staking rewards to investors quarterly. Staking is expected to begin "as soon as practicable" after the prospectus date, although payout is not guaranteed.
Why it matters
The development matters because it aligns FETH with other US Ether funds that offer staking, potentially addressing a previously noted “relative disadvantage” in comparison to products from firms like Grayscale and BlackRock. The inclusion of staking could enhance FETH’s competitiveness and appeal in the market for Ethereum ETFs.
Key context
Fidelity is one of the largest asset managers globally and follows other US issuers such as Grayscale, which enabled staking in October 2025, and BlackRock, which launched its iShares Staked Ethereum Trust ETF in February 2026. Bitwise had also attempted to add staking to its Ethereum ETF but withdrew the proposal in September 2025. As of August 11, 2026, FETH had about $2.13 billion in net inflows since its July 2024 launch.
Key numbers and entities
Fidelity Investments, Fidelity Ethereum Fund (FETH), US Securities and Exchange Commission (SEC), Grayscale, BlackRock, Bitwise, Ryne Mauck (Seeking Alpha contributor), $2.13 billion (FETH net inflows as of August 11, 2026). The ETF’s pre-market gain leading US ETH funds was 2.4% ahead of the US market open on the reported date.
What remains unclear
The source does not specify the exact timing for when staking will start beyond “as soon as practicable” after the prospectus date. It also does not clarify the potential risks or specific conditions under which staking rewards payouts might not be made, nor the detailed fee structure beyond the 15% staking fee share.