Fidelity Eyes Ethereum Staking with Amendment to FETH Fund

Fidelity, one of the largest financial institutions in the US, has filed an amendment to its registration statement with the SEC to incorporate Ethereum staking and quarterly cash distributions into its FETH fund.

The fund currently manages $898 million in net assets and could stake up to 100% of its ETH under normal operating conditions. The asset manager would adjust participation levels based on liquidity needs, network conditions, and redemption requests.

Fidelity will retain 85% of the gross rewards generated, while the remaining 15% will be distributed among the fund sponsor, custodians, and node operators. Blockdaemon, Figment, and Galaxy Digital Trading Cayman have been selected as the validator nodes for the fund.