Fidelity Launches Ethereum Fund with Staking Rewards Potential

Fidelity has launched its Ethereum Fund (FETH), an exchange-traded product that tracks the performance of ether. The fund is designed to seek the same returns as the Fidelity Ethereum Reference Rate, adjusted for expenses and liabilities.

The fund receives staking rewards from a Node Operator, which may include the custodians or their affiliates. This allows it to outperform the index before accounting for its own costs.

While the fund can stake up to 100% of its ether holdings under normal circumstances, there is no minimum percentage required. The Sponsor generally considers periods without material disruptions and within expected redemption ranges as normal conditions.