TLDR
- Fidelity has filed with the SEC to allow staking in its Ethereum ETF, which holds over $898 million in net assets
- The fund plans to retain 85% of gross staking rewards, with the rest going to sponsors, custodians, and node operators
- Ethereum’s community is divided over EIP-8363, which could reduce staking rewards if the staking ratio exceeds 50%
- Whale buying continues, with Bitmine acquiring 7,391 ETH worth ~$14 million as the $1,850 level held as support
- ETH is consolidating between key moving averages, with resistance at $1,922 and a bullish flag pattern targeting $2,500
Fidelity has filed with the US Securities and Exchange Commission to allow staking inside its Ethereum ETF, the Fidelity Ethereum Fund (FETH). The fund currently holds over $898 million in net assets.
JUST IN: $7.8T asset manager Fidelity files to add staking to its spot $ETH ETF.
Fidelity Ethereum Fund (FETH) could stake up to 100% of its 480k+ ETH, worth roughly $880M.
The fund would retain 85% of staking rewards and pay investors in cash every quarter. pic.twitter.com/pTrBMR7yP5
— Coin Bureau (@coinbureau) August 12, 2026
Under the proposal, the fund could stake most of its ETH holdings under normal conditions. Custodians Anchorage Digital Bank, BitGo, and Fidelity Digital Assets would handle the staking operations.
The fund plans to keep 85% of gross staking rewards. The remaining portion would be split among sponsors, custodians, and node operators as fees.
Net staking rewards would first cover the fund’s expenses. Leftover rewards would then be paid out quarterly in cash, in line with IRS Revenue Procedure 2025-31.
Community Split Over EIP-8363
The filing arrives as Ethereum’s community debates EIP-8363. This proposal would taper staking yield to zero if the staking ratio rises above 50%.
Supporters say it would reduce ETH inflation and improve network security. Critics argue it could damage DeFi and weaken the case for ETH as a yield-bearing asset for institutions.
Total staked ETH has been rising since January and hit 41.81 million ETH this week, with another 2.33 million ETH waiting in the entry queue.
Ethereum ETFs saw modest net outflows of $16.3 million over the past two days, following inflows of $244.9 million last week. Total net assets across these products sit at $10.48 billion.
Analyst Michaël van de Poppe, known on X as @CryptoMichNL, said ETH looks ready for a breakout. He pointed to tight price ranges and higher lows as signs that a volatile move higher is coming, setting a first target at $2,300.
$ETH looks so ready for a big breakout upwards.
Great consolidation and it keeps making higher lows.
Volatility is low, range is tight, meaning that the breakout will be super volatile.
Once it does, I don't think it will stall soon, my first target zone is at $2,300.
Good… pic.twitter.com/pE9ziKrHV4
— Michaël van de Poppe (@CryptoMichNL) August 12, 2026
Whales Step In at $1,850
Bitmine, the ETH treasury company led by Tom Lee, bought 7,391 ETH for around $14 million when prices dipped toward $1,850 on Tuesday.
Lee noted that the odds of a Fed rate hike in September dropped from 70% to 46%. He said easing financial conditions could act as a tailwind for crypto.
On the price chart, Ethereum is holding above its 20 and 50-day moving averages at $1,884 and $1,864. The 100-day EMA at $1,922 remains the key resistance level.
A bullish flag pattern has been forming since mid-July. A break above $1,950 could push ETH toward $2,150, and then potentially $2,500.
ETH saw $32.3 million in liquidations over the past 24 hours, with $23.4 million of those coming from short positions.
