Fidelity Pursues Staking for Ethereum ETF Amid Growing Competition

Fidelity Investments has filed with the US Securities and Exchange Commission (SEC) to add staking capabilities to its Ethereum exchange-traded fund, FETH.

The move follows similar efforts by Grayscale and BlackRock, which have already introduced staking-enabled products. According to Fidelity's filing, the fund could stake up to 100% of its Ether holdings under normal conditions, excluding reserves for redemptions, expenses, and liquidity needs.

Fidelity plans to retain 85% of staking rewards, with 15% going toward staking fees. The company expects quarterly cash distributions, although payouts are not guaranteed. FETH has recorded about $2.13 billion in cumulative net inflows since its July 2024 launch.