Ethereum

Fidelity Files With SEC to Add Staking to Ethereum ETF

Fidelity has asked the SEC to let its Ethereum Fund stake up to 100% of holdings, with 85% of rewards kept by the fund and 15% going to staking fees. Investors would receive quarterly cash payments out of the fund's share, though the filing says these are not guaranteed.

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Quick Summary
  • FETH could stake up to 100% of its Ether under normal conditions, retaining 85% of rewards after a 15% staking fee
  • Quarterly cash distributions to investors are planned but not guaranteed, with staking to begin as soon as practicable after the prospectus date
  • FETH held approximately $2.13 billion in cumulative net inflows as of August 11, 2026, and led pre-market ETH fund gains at 2.4% on the morning after the filing

Fidelity Investments has submitted a filing to the US Securities and Exchange Commission (SEC) seeking to add staking capabilities to its spot Ether exchange-traded product, the Fidelity Ethereum Fund (FETH), according to documents filed on Tuesday.

What the Filing Proposes

Under the proposed structure, FETH would be permitted to stake up to 100% of its Ether holdings under normal operating conditions, excluding ETH set aside for redemptions, expenses, and liquidity requirements.

The fund would retain 85% of all staking rewards generated, with the remaining 15% allocated toward staking fees. Fidelity plans to distribute a portion of those rewards to investors as quarterly cash payments, though the filing notes payouts are not guaranteed.

Fidelity said it expects staking activity to commence ‘as soon as practicable’ following the prospectus date. The preliminary prospectus remains subject to revision before the registration statement takes effect.

FETH’s Position in the Market

As of August 11, FETH had accumulated approximately $2.13 billion in cumulative net inflows since launching in July 2024, according to data from Farside Investors. On the morning after the filing, the ETF was leading pre-market gains across most Ether funds, rising 2.4%, according to Yahoo Finance data.

Seeking Alpha contributor Ryne Mauck wrote in May that FETH’s absence of a staking feature placed it at a ‘relative disadvantage’ compared to staking-enabled rivals from Grayscale and BlackRock.

Where Fidelity Fits Among Rivals

Fidelity’s move follows a wave of staking adoption among US-listed Ether products. Grayscale became the first US issuer to enable staking in spot crypto exchange-traded products in October 2025, and BlackRock launched its separate iShares Staked Ethereum Trust ETF, ticker ETHB, in February 2026. Bitwise also sought to add staking to its Ethereum ETF but withdrew that proposal in September 2025.

If approved, Fidelity’s staking addition would bring FETH in line with competing products and close the yield gap Mauck identified.

⚖️ Our Verdict ⚖️ Watch and Wait

Closing the yield gap on the largest Ether products is a sensible move and Fidelity is late to it, with Grayscale and BlackRock already there. But this is a filing rather than an approval, the prospectus is preliminary and subject to change, staking starts 'as soon as practicable' with no date attached, and what reaches investors is an unspecified portion of the fund's 85% share rather than the staking yield itself.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
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