Fidelity Investments Plans to Add Staking to Its Spot Ethereum ETF

Fidelity Investments has filed an amended S-3 form with the U.S. Securities and Exchange Commission (SEC). It follows that the company plans to add staking to its spot Ethereum ETF — FETH.

The filing states that the ETF provider will be able to stake up to 100% of the fund's assets. According to SoSoValue, the total assets under management for FETH amount to nearly $900 million.

The mechanism works as follows — custodians Anchorage Digital, BitGo, and Fidelity Digital Assets will stake Ethereum through trusted providers. These include Blockdaemon, Figment, and Galaxy.

The minimum and maximum share of locked assets are not specified; however, the provider reserves the right to retain a portion of Ethereum for share redemptions and other expenses.

Fidelity Investments will receive 85% of the income, while operators, custodians, and the sponsor (a subsidiary of the provider) will receive 15%. First and foremost, the issuer will direct the net staking profit to cover expenses, with the remainder distributed to shareholders on a quarterly basis.

It is worth noting that in November 2025, the U.S. Internal Revenue Service (IRS) introduced amendments allowing operators of crypto asset trusts to stake assets without losing their tax status.

This has led several companies to add such a feature to their products. However, BlackRock, for example, took a different path. In December 2025, the company applied to launch a new fund that would include this capability.