$ETH Strong demand from investors for Ethereum ETF staking Fidelity Investments originally filed for staking for its Ethereum spot ETF in November 2023 to provide investors with direct exposure to ETH without requiring direct ownership.

The SEC approved the ETF in May 2024, along with similar offerings from other asset managers, leading to its official launch in July 2024. Since then, the Fidelity Ethereum ETF has attracted strong interest from investors, accumulating approximately $1.45 billion in net inflows.

However, the fund faced challenges due to the SEC's previous stance on staking. When the SEC approved Ethereum ETFs in May 2024, it required issuers to exclude staking provisions from their filings.

The restriction prevented asset managers from offering staking rewards, resulting in estimated annual yield losses of about 3% for these funds.

The regulatory landscape began to change in early 2025. In February, the SEC acknowledged a proposal from NYSE Arca that sought to amend regulations and allow participation in the Grayscale Ethereum ETF.