Crypto
Fidelity Files for Ethereum ETF Staking Amid Reward Taper Debate
Fidelity has filed with the SEC to allow staking in its Ethereum ETF, amid debate over EIP-8363's proposed reward tapering.
The fund will retain 85% of gross staking rewards and distribute the remainder quarterly in cash. Fidelity aims to stake its entire ETH holdings through custodians Anchorage Digital Bank, BitGo Bank, and Fidelity Digital Assets.
Staking rewards have been a contentious issue, with some arguing that EIP-8363's proposed reward tapering will help solve ETH inflation and improve security, while others claim it could harm decentralized finance (DeFi) and the 'ETH is productive' narrative.