Fidelity's FETH ETF to Stake Up to 100% of Ether Holdings After SEC Approval

Fidelity has filed an amendment to its Form S-3 registration statement with the U.S. SEC, allowing the Fidelity Crypto Ethereum Fund (FETH) to stake up to 100% of its ether holdings.

The amendment was made on July 24, 2026, and updates a prior S-1 that was declared effective by the SEC on July 31, 2025. This move is an attempt by Fidelity to attach ETH staking rewards to a spot Ethereum ETF that launched without this feature.

The fund will retain 85% of gross staking rewards, with the remaining 15% allocated as a Staking Fee split among the Sponsor, custodians, and node operators. Custody sits with Anchorage Digital Bank NA, BitGo Bank & Trust, and Fidelity Digital Assets, N.A.

The mechanism functions such that shares 'may not be sold until the registration statement becomes effective,' per the prospectus language, and staking is described as an action the Sponsor expects to take 'as soon as practicable' after that point rather than one already in motion.