Fidelity Adds Ethereum Staking to Its $898 Million Fund

Fidelity has made significant changes to its Fidelity Ethereum Fund by adding Ethereum staking capabilities. The fund, which holds approximately $898 million in assets, will now allow investors to stake up to 100% of their holdings under normal conditions while maintaining a sufficient amount for liquidity.

The addition of staking rewards is expected to generate additional income for the fund, with 85% of the rewards being kept after fees. The funds generated from these rewards will be used to cover expenses before distributing quarterly cash payouts to shareholders.

Fidelity plans to begin staking soon after receiving regulatory approval and has partnered with node operators like Blockdaemon and Galaxy Digital to facilitate this process.