Fidelity Seeks SEC Approval for Staking in its Spot Ether ETF

Fidelity Investments has filed an amended registration statement with the US Securities and Exchange Commission to add staking capabilities to its spot Ether exchange-traded fund, FETH.

The filing allows for up to 100% staking of the Ether held by the ETF, with 85% of staking rewards accruing to the fund and 15% going to custodians and node operators.

Fidelity has named Blockdaemon, Figment, and Galaxy as node operators for the ETF. Net staking rewards will first cover fund operating expenses, with any remaining amount distributed as cash payouts.

The company may sell some Ether if needed to fund these payouts. Fidelity plans to keep some Ether unstaked to meet liquidity needs, including redemptions and fund expenses.