In a bold move that could reshape the crypto ETF landscape, Fidelity’s Ethereum ETF might soon add staking to its offerings. The Cboe BZX Exchange filed a proposal with the SEC on March 11, 2025, seeking approval to incorporate staking capabilities into FETH, which has already accumulated nearly $1 billion in assets since its July 2024 launch.
Let’s be real—this is a big deal. FETH currently gives investors exposure to Ethereum without direct ownership, but something’s missing: those sweet staking rewards. Traditional ETH holders can earn approximately 3.3% APR through staking. FETH investors? They’re getting zilch from that particular revenue stream.
The staking proposal would change everything. FETH would partner with trusted providers to stake ETH and pass those rewards to fund holders as income. This approach aligns with Ethereum’s Proof of Stake consensus mechanism implemented in September 2022. More money for doing absolutely nothing different than before? Investors tend to like that sort of thing.
Regulatory hurdles remain, obviously. The SEC has a 45-day initial review period to evaluate the proposal. They’ll assess risks, custodial challenges, and whether this aligns with their ever-evolving stance on crypto. Given recent approvals, the winds might be shifting in a crypto-friendly direction.
If approved, the impact could be significant. FETH would instantly become more attractive compared to non-staking competitors. Institutions might jump in faster. The whole Ethereum staking ecosystem could see a boost. It’s not rocket science—higher returns attract more money.
For investors, the math is simple. Same ETF, potentially bigger returns. No need to figure out staking pools, validators, or technical headaches. Just the same old FETH with a new income stream attached. This method effectively offers a form of liquid staking that enables investors to maintain tradable assets while still earning rewards. This filing marks a significant shift from Fidelity’s previous stance, when they had to exclude staking language from their original ETF application to avoid SEC classification issues.
The clock is ticking on the SEC review. Fidelity isn’t the first to evaluate staking for ETFs, but with their massive footprint in traditional finance, they might be the ones to finally make it happen. Stay tuned. This could get interesting.
