Fidelity Adds Staking and Quarterly Payouts to Ethereum ETF
Fidelity is taking a significant step in its Ethereum investment product by adding staking and quarterly cash payouts to the Fidelity Ethereum Fund (FETH), one of the largest spot ether ETFs in the U.S. with $898 million in net assets.
The fund will have the ability to stake as much as 100% of its ether under normal conditions, though a minimum has not been set by Fidelity. Some ETH will be kept available for redemptions, expenses, and other liquidity needs.
This move follows an IRS safe harbor bulletin issued in November 2025 that allows qualifying crypto trusts to stake assets without losing their grantor-trust tax status. Fidelity joins Grayscale and 21Shares by adding staking to existing ether funds, while BlackRock took a different route by introducing a separate staking product.
The fund will retain 85% of gross staking rewards, with the remaining 15% going to the fund sponsor, custodians, and node operators. Blockdaemon, Figment, and Galaxy are named as the trust's node operators.