Fidelity Bolsters Its Ethereum ETF with Staking and Cash Distributions

Fidelity is reportedly planning to add staking and quarterly cash payouts to its Ethereum ETF, FETH. This move comes after BlackRock debuted a new staking Ethereum ETF called ETHB in March.

The FETH fund will be able to stake up to 100% of its ETH holdings under normal conditions, with no minimum requirement. However, it will retain some ETH for redemptions, expenses, and other liquidity needs.

The net rewards from staking will first cover fund expenses, with the remainder distributed quarterly in cash. If necessary, the ETF may sell some Ether to fund distributions.