According to Decrypt, the U.S. Securities and Exchange Commission has received a formal filing from Boston-based asset manager Fidelity Investments regarding its proposed staked ether strategy known as FETH.
The application outlines a mechanism where the fund intends to stake up to 100% of its held ethereum on public proof-of-stake networks. Under this plan, any rewards generated through the staking process would not remain in the fund but instead be distributed directly to shareholders in the form of quarterly cash payments.
Fidelity notes that final approval from regulators is a prerequisite before implementation can proceed. The filing also indicates that investors who choose to hold FETH shares must agree to specific terms, including an additional 0.5% fee on their account balance and authorization for digital assets to be moved off the fund’s designated platform.
The strategy represents a significant evolution in how institutional funds handle staked cryptocurrencies under U.S. regulations. While many traditional mutual funds are prohibited from participating directly in public proof-of-stake networks, FETH aims to navigate these constraints while offering investors exposure to staking yields without requiring them to manage private keys.
Fidelity states that the fund will continue to operate as a standard investment vehicle until regulatory clearance is obtained. Until then, no transactions involving new stakes or reward distributions can occur within the framework of this proposal.
