Fidelity's Ethereum Fund Becomes Income-Bearing Product

Fidelity has filed an amended registration statement for its Ethereum fund, FETH, that would allow it to stake as much as 100% of the ether it holds.

The proposal changes the basic sale Fidelity can make to investors. Until now, FETH has been a cleaner brokerage-account version of holding ether: no wallet, no private-key headache, no validator setup, but also no staking income.

With the amended prospectus, FETH becomes a yield product with quarterly cash payouts based on staking rewards.

The funds' custodians would stake the trust's ether with one or more node operators. The filing names Anchorage Digital Bank, BitGo Bank & Trust and Fidelity Digital Assets as custodians.