Fidelity Investments plans to add staking to its spot Ether exchange-traded product, the Fidelity Ethereum Fund (FETH), according to a filing submitted Tuesday to the US Securities and Exchange Commission (SEC). Under the proposal, FETH could stake a portion of its Ether under normal conditions. ETH needed for redemptions, expenses and liquidity would be excluded. The fund would retain a share of the staking rewards, while another portion would cover staking fees. Fidelity plans quarterly cash distributions to investors, although the payouts are not guaranteed. The company expects staking to begin “as soon as practicable” after the prospectus date. The preliminary prospectus may still change before the registration statement becomes effective. Grayscale became the first US issuer to introduce staking in spot crypto exchange-traded products in October 2025. BlackRock launched its separate iShares Staked Ethereum Trust ETF (ETHB) in February 2026. Bitwise also sought to add staking to its Ethereum ETF but withdrew the proposal in September 2025. Seeking Alpha contributor Ryne Mauck wrote in May that FETH’s lack of staking placed it at a “relative disadvantage” to products from Grayscale and BlackRock. FETH had recorded about $2.13 billion in cumulative net inflows since its July 2024 launch as of Aug. 11, according to Farside Investors. Ahead of Wednesday’s US market opening, it rose 2.4% and led pre-market gains across most ETH funds, according to Yahoo Finance. For Somalis following crypto markets, the proposal offers a concrete view of how asset managers are competing to add staking to Ether funds, while expected returns remain subject to fees and distributions that are not guaranteed.