Fidelity Investments has asked the U.S. Securities and Exchange Commission to approve staking and quarterly cash distributions for the Fidelity Ethereum Fund, or FETH, through an amended registration statement. The proposal would allow the spot Ethereum ETF to stake up to 100% of its ETH while keeping part of its holdings liquid for redemptions, expenses and other operating needs. Under the structure described, 85% of gross staking rewards would go to the fund and 15% would be allocated among Fidelity, the custodian and node operators including Blockdaemon, Figment and Galaxy. Net staking income would first cover fund expenses, with any remainder potentially paid to shareholders in cash each quarter, and Fidelity said it may sell some ETH to raise cash for those distributions. FETH was formed in October 2023 and listed on Cboe BZX in July 2024 as one of the first U.S. spot Ethereum ETFs. The fund charges a 0.25% fee. The ETF-focused report cited CoinGlass data showing about $1.34 billion in assets under management in mid-August, ranking FETH fourth among U.S. spot Ethereum ETFs, while earlier filing-date material cited $898 million in net assets and about $2.12 billion in cumulative net inflows as of Aug. 11, according to SosoValue. A separate market report described FETH as holding more than 480,000 ETH worth roughly $880 million. Fidelity's filing was also cited by BitMine Immersion Technologies and its chairman Tom Lee as a feature that could make ETH ETFs more attractive to yield-focused investors. In broader market commentary, Trader Mayne said Ethereum was showing its strongest ETH/BTC momentum in years but warned ETH could still fall below $1,000 if Bitcoin dropped to $50,000 or $45,000, while pseudonymous trader DonAlt said he had begun building an Ethereum position.