Fidelity Seeks to Add Ethereum Staking to FETH Fund

Fidelity has filed an amendment to its registration statement for the FETH fund with the SEC, seeking to add Ethereum staking and quarterly cash distributions to the fund. The move comes as the asset manager looks to capitalize on the growing trend of staking in the crypto space.

The FETH fund currently manages $898 million in net assets and could stake up to 100% of its ETH under normal operating conditions, with no minimum requirement established. The fund's participation levels would be adjusted based on liquidity needs, network conditions, and redemption requests.

Fidelity has selected Blockdaemon, Figment, and Galaxy Digital Trading Cayman as the node operators for the fund, which will retain 85% of the gross rewards generated from staking. The remaining 15% would be distributed among the fund sponsor, custodians, and node operators.