Fidelity Seeks SEC Approval for FETH Staking Feature

Fidelity Investments has submitted an amended application to the U.S. Securities and Exchange Commission (SEC) to add staking to its Ethereum ETF, FETH.

The company aims to allow up to 100% of the fund's assets, totaling nearly $900 million, to be staked without minimum or maximum thresholds.

Custodial functions will be performed by Anchorage Digital, BitGo, and Fidelity Digital Assets, which will stake Ethereum through trusted operators Blockdaemon, Figment, and Galaxy.

Fidelity Investments reserves the right to retain a portion of the assets for share redemption and expenses. The revenue distribution will see 85% of staking profits go to the company, while operators, custodians, and the sponsor will receive 15%. The net profit after covering expenses will be distributed among shareholders quarterly.