Fidelity Adds ETH Staking to Ethereum Fund Amid Growing Trend

Fidelity has filed an amendment to its registration statement for the Fidelity Ethereum Fund (FETH) with the SEC, aiming to incorporate ETH staking and quarterly cash distributions into the fund.

The fund currently manages $898 million in net assets and could stake up to 100% of its ETH under normal operating conditions, reserving a portion to cover redemptions, expenses, distributions, and other liquidity obligations.

Fidelity is following the trend set by Grayscale and 21Shares, which already offer staking in their Ethereum funds. Blockdaemon, Figment, and Galaxy Digital Trading Cayman will operate as the fund's validator nodes.

The reward-sharing structure contemplates that the fund retain 85% of gross returns, while the remaining 15% would be distributed among the fund sponsor, custodians, and node operators.