According to CoinMeta, Fidelity is preparing to convert its Ethereum fund (FETH) into a yield-generating investment product. The company has submitted a revised registration statement to the U.S. Securities and Exchange Commission (SEC) requesting permission to pledge up to 100% of the fund's Ethereum holdings and to distribute the resulting net rewards to shareholders through quarterly cash distributions. This application is still in its preliminary stages, and the changes cannot take effect until the registration statement is approved. As of the time of the application, the fund's net assets were approximately $898 million. Fidelity stated that pledging may begin “as soon as possible” after the registration is approved, but payments are not guaranteed, and the fund may sell Ethereum to generate cash for distribution. Meanwhile, the Ethereum fund (ETF) has seen a small net outflow over the past two days, totaling $16.3 million, which follows a inflow of $244.9 million last week and represents the best weekly performance since mid-April. Nevertheless, the total net assets of this fund (ETF) remain relatively low at around $10.48 billion.