Fidelity Seeks SEC Approval for Yield-Bearing Ethereum ETF

Fidelity has filed a pre-effective amendment to its registration statement to let its spot Ethereum ETF, FETH, stake the Ethereum it holds.

The fund would stake up to 100% of its holdings and pay rewards to investors as quarterly cash distributions.

This move follows Grayscale and BlackRock, which have already taken similar steps after a Treasury and IRS safe harbor cleared the path.

Fidelity's FETH currently tracks the Fidelity Ethereum Reference Rate, adjusted for fees. With staking, its goal becomes that index plus an amount based on staking rewards.