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spot Ethereum ETF market is converging on a single design upgrade: staking yield. Fidelity filed a pre-effective amendment to its registration statement on Aug.
11, asking the Securities and Exchange Commission to let its Fidelity Ethereum Fund (FETH) stake the ETH it holds and pay rewards to shareholders as quarterly cash distributions.
If approved, the amendment would move the fund's stated objective from tracking the Fidelity Ethereum Reference Rate adjusted for fees to targeting that index plus an amount based on staking rewards, with the filing stating the trust is expected to outperform the index before expenses.
How the mechanism works Staking is how Ethereum's proof-of-stake network secures itself. Holders lock up ETH to help validate transactions and earn newly issued tokens in return.
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