Fidelity Seeks SEC Approval for Staking on $898 Million Ethereum ETF

Fidelity has submitted an application to the SEC for permission to add staking capabilities to its Ethereum ETF, which currently manages over $898 million in assets. The fund would use most of its Ethereum holdings for staking and keep 85% of the rewards earned, distributing them quarterly to investors after operational costs.

This move comes as a proposal, EIP-8363, is being debated that could reduce staking yields if more than 50% of Ethereum's supply is staked. Meanwhile, technical indicators suggest Ethereum may be on the verge of a price breakout, supported by recent large purchases from investors like Bitmine.

However, some Ethereum holders are moving their assets, sparking fears of a major sell-off. Four former Ethereum whales have recently transferred millions in ETH after years of inactivity, including one Genesis wallet that moved 2,680 ETH worth over $5 million in July and August.