Fidelity Expands Staking on Its $898M ETH Fund
Fidelity's Ethereum Fund (FETH) is set to add staking and quarterly cash payouts, joining Grayscale and 21Shares in offering this feature for their ETH funds. The fund currently holds $898 million in net assets and could stake up to 100% of its Ethereum holdings under normal conditions.
The move comes after a safe harbor bulletin issued by the IRS in November 2025, which allowed crypto trusts to stake their assets without losing their grantor-trust tax status. Fidelity would retain 85% of gross staking rewards, while the remaining 15% would go to the sponsor, custodians and node operators.
The company has named Blockdaemon, Figment and Galaxy as its trust's node operators. Net staking rewards would first be used to cover fund expenses before being distributed to shareholders in cash quarterly, with the exact amount depending on factors such as Ethereum staking yields and validator performance.