Fidelity Seeks SEC Approval for Staking Up to 100% of Ether Fund

Fidelity Investments has filed an amended registration statement with the SEC to stake up to 100% of the ether in its $898 million Ethereum fund, FETH. The move will allow shareholders to receive quarterly cash payouts, with 15% of gross staking rewards going to the sponsor, custodians, and node operators.

The Internal Revenue Service issued a safe harbor in November 2025 that lets qualifying crypto trusts stake without forfeiting grantor-trust status. This guidance requires net staking rewards to be distributed at least quarterly, which aligns with Fidelity's plan for the fund.

BlackRock has taken a similar approach by launching a separate staked ether ETF in March 2026, while Grayscale and 21Shares added staking to their existing funds. The new filing leaves many questions unanswered, including when staking will begin and what the net yield will look like after expenses.