Fidelity Boosts FETH with Ether Staking and Quarterly Payouts

Fidelity has enhanced its Fidelity Ethereum Fund (FETH), which holds $898 million in assets, by adding ether staking and quarterly cash distributions. The fund will keep 85% of the staking rewards, with 15% going to service providers like Blockdaemon, Figment, and Galaxy.

This move follows IRS guidance allowing crypto trusts to stake without losing tax status and aligns Fidelity with peers like Grayscale and 21Shares, while BlackRock offers a separate staking product. Net rewards will cover expenses first, then be distributed quarterly to investors, with some ETH held for liquidity and redemptions.