Fidelity Expands FETH Fund with Ethereum Staking and Cash Payouts

Fidelity Investments has announced plans to add Ethereum staking and quarterly cash payouts to its FETH fund, which manages $898 million in assets.

The amendment to the fund's registration statement will allow it to stake up to 100% of its Ether holdings under normal operating conditions. The fund will reserve a portion of ETH for redemptions, expenses, distributions, and liquidity needs.

Fidelity will retain 85% of staking rewards after service fees are paid to providers, with the remaining rewards supporting expenses, redemptions, additional staking, and shareholder payments.