Fidelity Just Filed to Let Its Crypto Ethereum ETF Stake 100% of Its Holdings

FD Funds Management LLC, sponsor of the Fidelity Crypto Ethereum Fund (FETH), filed a pre-effective amendment to its Form S-3 registration statement with the U.S. SEC on July 24, 2026, adding disclosure that would let the fund stake up to 100% of its ether (ETH) holdings.

The amendment explicitly states that no additional securities are being registered and updates a prior S-1 that the SEC had declared effective on July 31, 2025.

This is not simply a housekeeping update to a shelf registration. It is Fidelity's attempt to attach ETH staking rewards to a spot Ethereum ETF that launched without that feature, and the filing itself frames staking as an activity the sponsor expects to begin once the registration statement becomes effective, not one that is already underway.

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Fidelity Crypto FETH News: What the Amendment Actually Changes

The prospectus language describes the Trust staking ether through custodians and node operators under normal circumstances, while reserving a portion for redemptions, expenses, and liquidity management under what the filing calls its Liquidity Program.

The Trust would retain 85% of gross staking rewards, with the remaining 15% allocated as a Staking Fee split among the Sponsor, custodians, and node operators, on top of the existing 0.25% annual Sponsor fee on Ether Holdings.