Fidelity Boosts FETH with Staking and Quarterly Payouts
Fidelity is expanding its Ethereum ETF offering by adding staking and quarterly cash payouts to its FETH fund. This move follows BlackRock's debut of ETHB, another staking Ethereum ETF. According to a report from Wu Blockchain, Fidelity plans to stake up to 100% of its ETH holdings under normal conditions, with no minimum requirement.
The fund will retain some ETH for redemptions, expenses, and other liquidity needs. It will retain 85% of gross staking rewards, with the remaining going to the sponsor, custodians, and node operators. The net rewards will first cover fund expenses before being distributed quarterly in cash.
Fidelity's FETH currently holds nearly $900 million in net assets under management, making it a top contender among Ethereum ETFs. BlackRock's ETHB debuted with over $100 million in assets and has since grown to hold around $577 million in net assets.