Fidelity Could Turn Its Ethereum ETF Into A Yield Generator
Fidelity has filed to add staking to its Fidelity Ethereum Fund, known as FETH.
The proposal could allow the fund to stake up to 100% of its ethereum:native.
FETH would continue tracking ether while also earning staking rewards. Shareholders could receive net staking proceeds through quarterly cash distributions.
Anchorage Digital, BitGo and Fidelity Digital Assets would custody the ETH and support staking operations.
The filing is preliminary and must become effective before the changes can take effect.