Fidelity Adds Staking, Quarterly Payouts to Ethereum Fund

Fidelity Investments is adding staking and quarterly payouts to its Fidelity Ethereum Fund (FETH), which has approximately $898 million in net assets. The company plans to use staking rewards, among other purposes, to fund cash distributions to investors.

The fund will be able to stake up to 100% of its ETH under normal market conditions, but Fidelity will retain a portion of the assets liquid for redemptions and expenses. The company will keep 85% of staking rewards, with the remaining 15% going to sponsors, custodians, and node operators.

The change follows a November 2025 decision by the U.S. Internal Revenue Service (IRS) that allowed qualifying cryptocurrency trusts to participate in staking without losing their grantor trust tax status. Fidelity believes that establishing a clear regulatory framework for digital assets could strengthen investor confidence and help the U.S. remain competitive in the global market.