Fidelity Files SEC Application for Staking in Spot Ethereum ETF
Fidelity, a US investment giant, has filed an application with the SEC to introduce staking features to its spot Ethereum ETF, FETH. The fund, valued at approximately $898 million, plans to distribute staking revenue to investors as regular cash payments every three months.
Under normal market conditions, FETH will be able to stake up to 100% of its Ethereum holdings. However, the fund may hold a portion of its assets without staking them to meet investor buyback requests, finance operational expenses, and manage liquidity needs.
Fidelity's filing also states that 85% of the gross staking rewards earned will be held by FETH, while the remaining 15% will be shared among the fund sponsor, custody service providers, and node operators. Blockdaemon, Figment, and Galaxy have been identified as the node operators.
Fidelity plans to cover its expenses before distributing staking income to investors, who can expect to receive payments at least every three months. If necessary, FETH may sell ETH to finance these payments.