Fidelity Adds Staking and Quarterly Payouts to FETH

Fidelity is expanding its Fidelity Ethereum Fund (FETH), one of the largest spot ether ETFs in the U.S., by adding staking and quarterly cash payouts.

The fund, with $898 million in net assets, will be able to stake up to 100% of its ether under normal conditions, though no minimum has been set.

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 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 listed as the trust's node operators.