Fidelity seeks SEC approval to add Ethereum staking to its $898M fund

Fidelity Investments has filed an amended registration statement with the U.S. Securities and Exchange Commission (SEC) to incorporate Ethereum staking into its $898 million Fidelity Ethereum Fund (FETH).

Under the proposed structure, the fund could stake up to 100% of its ETH holdings during normal operating conditions, while maintaining sufficient liquidity for redemptions and expenses. The fund intends to distribute net staking rewards to shareholders through quarterly cash payments. Fidelity plans to retain 85% of gross staking rewards, with the remaining 15% allocated to sponsors, custodians, and node operators.

Staking is expected to commence as soon as practicable once the prospectus takes effect. Fidelity has identified Blockdaemon, Figment, and Galaxy Digital Trading as potential partners for the infrastructure required to participate in the Ethereum proof-of-stake network.