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Fidelity Investments filed an amended registration statement with the US Securities and Exchange Commission on Aug. 12, seeking to addstaking and quarterly cash distributions to the Fidelity Ethereum Fund (FETH), the company’s spot Ethereum (ETH) exchange-traded fund.
How the Staking Model Would Be Structured
FETH held $898 million in net assets as of the filing date. The fund couldstake up to 100% of its ETHunder normal market conditions, with no minimum stakingthreshold set. Fidelity would reserve enough ETH to cover redemptions, expenses, and other liquidity needs at all times. Three firms are named as node operators in the filing: Blockdaemon, Figment and Galaxy. The fund would keep 85% of gross staking rewards. The remaining 15% would be split among the fund sponsor, custodians, and the node operators.
Net staking rewards would first go toward covering the fund’s operating expenses. Any remainder would then be paid out to investors as quarterly cash distributions. Fidelity noted in the filing that distributions are not guaranteed. The fund may sell some ETH to generate cash for payouts if needed. Fidelity said it expects staking to begin “as soon as practicable” after the prospectus date, though the preliminary filing remains subject to change before it becomes effective.
The November 2025 IRS safe harbor bulletin made this structure possible for existing ETH funds. The bulletin allows qualifying crypto trusts to stake assets without losing their grantor-trust tax status. It also requires such funds to distribute net staking rewards to investors at least every quarter.
Where FETH Stands Among US Ethereum ETFs
FETH has recorded about $2.13 billion in cumulative net inflows since its July 2024 launch 12, the fund was up 2.4% in pre-market trading, outpacing most other US-listed ETH funds, per Yahoo Finance data. A Seeking Alpha contributor wrote in May that the fund’s lack of staking put it at a relative disadvantage to competing products that already offered staking rewards
Related Article: The Next Ethereum Validator War Won’t Be Fought Over Staking Yield
Grayscale became the first US issuer to enable staking inside a spot cryptoexchange-traded fund (ETF) in October 2025. BlackRock chose a different approach and launched a standalone staking product, the iShares Staked Ethereum Trust ETF (ETHB), in February 2026. Bitwise also attempted to add staking to its Ethereum ETF but withdrew the proposal in September 2025. If Fidelity’s filing is approved, FETH would join Grayscale and 21Shares as US funds offering staking within an existing ETH fund structure rather than through a separate product.
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