📊 Fidelity is adding staking to its ETH ETF. The division has already been written into the document.
Fidelity is taking action. The Fidelity Ethereum Fund. Abbreviated as FETH. $898 million. One of the largest spot ETH ETFs in the U.S.
August 11. Fidelity submitted amended documents to the SEC. It will enable staking for FETH. Up to 100% of the ETH can be staked. It will only keep the small amount needed for redemptions and operations.
How the returns are split. 85% stays in the fund. 15% goes to Fidelity, the custodian, and node operators. Shareholders receive cash dividends quarterly. Not guaranteed.
Who provides custody. BitGo. Anchorage Digital. Fidelity’s own digital assets division. The nodes are run by Blockdaemon, Figment, and Galaxy Digital.
It hasn’t started yet. The filing is in a pre-effective state. It has to wait for the SEC to formally approve. Fidelity says that once it becomes effective, it will begin staking as soon as possible.
Why now. Grayscale and BlackRock are already running theirs. It’s a yield competition. An unstaked ETH ETF is essentially free money given away. Whoever starts first gets an extra share of block rewards.
ETH $1,876. Down 0.4%. BTC $63,343. Down 0.5%. The market hasn’t reacted yet, but Fidelity is laying the groundwork.
For retail investors, this is the first time Ethereum can earn yield through a regulated channel. If you don’t stake, you’re starting to fall behind.
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