Fidelity Adds Staking and Cash Payouts to Ethereum ETF

Fidelity is reportedly planning to add staking and quarterly cash distributions to its Ethereum ETF, FETH. The move follows BlackRock's debut of ETHB in March.

The report from Wu Blockchain states that FETH will be able to stake up to 100% of its ETH holdings 'under normal conditions', with no minimum requirement. However, the fund will retain some ETH for redemptions, expenses, and other liquidity needs.

The fund will retain 85% of gross staking rewards, with the remaining distributed among sponsors, custodians, and node operators. Net rewards will first cover fund expenses before being distributed quarterly in cash.