Cboe BZX Exchange Proposes Rule Change to Allow Staking for Fidelity's Ethereum ETF (FETH)

On Tuesday, Cboe BZX Exchange filed a proposed rule change with the U.S. Securities and Exchange Commission (SEC) to allow Fidelity Investments' spot Ethereum ETF (FETH) to stake ether. The proposal aims to amend the Fidelity Ethereum Fund, potentially allowing it to stake all or a portion of its ether through trusted providers, with staking rewards treated as income. This comes as Fidelity's FETH, the third-largest ether ETF, sees its assets under management shrink, mirroring the broader crypto market's decline. When spot Ethereum ETFs were initially approved last July, staking was excluded to facilitate approval, following the launch of spot Bitcoin ETFs in January.