[DigitalToday reporter Yoonseo Lee (이윤서)] Asset manager Fidelity has filed documents with the U.S. Securities and Exchange Commission to add a staking function to its Ethereum spot exchange-traded fund, FETH.

On Aug. 12, blockchain media outlet Cointelegraph reported that Fidelity laid out a structure in the filing to generate staking rewards using the Ethereum held by FETH.

The core issue is a change in the ETF’s earnings structure. Fidelity said that under normal market conditions it can stake up to 100% of the Ethereum held by FETH. Ethereum that must be kept to meet redemptions, cover costs and secure liquidity is excluded. Of rewards generated through staking, 85% accrues to FETH and 15% is allocated as a staking fee.

It also set out a distribution method for investors. Fidelity plans quarterly cash distributions, but said actual payments are not guaranteed.

Staking is aimed to begin as soon as possible after the prospectus record date. However, the contents of this preliminary prospectus may change until the registration statement takes effect.

The application comes as staking competition expands in the Ethereum spot ETF market. Grayscale introduced staking to a crypto exchange-traded product in October 2025, the first among U.S. issuers, and BlackRock launched a separate product, ETHB, in February 2026. Bitwise also sought to add staking to an Ethereum spot ETF, but withdrew the proposal in September 2025.

The market has cited FETH’s non-staking structure as a weakness. Seeking Alpha analyst Ryan Merck (라이언 머크) said in May that FETH was at a disadvantage compared with products from Grayscale and BlackRock because it does not support staking. That suggests the ability to reflect staking income in an ETF is emerging as a factor that determines competitiveness.

Fund inflows are also substantial. Farside Investors data show FETH posted cumulative net inflows of $2.13 billion from its July 2024 launch through Aug. 11, 2026. Based on Yahoo Finance data, it rose 2.4 percent, showing relatively strong performance among major Ethereum funds.

If Fidelity’s application is approved, FETH will gain an additional earnings structure through staking. However, the start date for actual staking is undecided, and the preliminary prospectus may also change until it is finalised. The direction of the regulatory process is expected to be a key point to watch.