Fidelity seeks SEC approval to stake Ethereum and pay cash dividends

Fidelity wants to turn its Ethereum ETF into a dividend machine. The Boston-based asset manager filed a proposal with the SEC to let its Fidelity Ethereum Fund (FETH) stake up to 100% of the ether it holds. Unlike rival products that simply track price, this move would allow the fund to earn network rewards and distribute them to investors as quarterly cash payments. It's a bold play to lure capital by offering yield on top of price exposure. The filing doesn't name a specific infrastructure partner yet, but it signals a shift toward making crypto ETFs look more like traditional income-generating stocks. If the regulator bites, it would bridge the gap between passive holding and active network participation for retail accounts. Now the ball is back in the SEC's court to decide if staking rewards are safe for the masses. Will the promise of quarterly checks be enough to make FETH the dominant choice for institutional ether buyers?