Fidelity Pursues Staking and Quarterly Distributions for Ethereum ETF
Fidelity Investments has filed an amended registration statement with the US Securities and Exchange Commission to add staking and quarterly cash distributions to its FETH Ethereum fund, a spot Ethereum exchange-traded fund. The fund currently holds $898 million in net assets as of August 12.
Under the proposed structure, Fidelity would reserve enough ETH to cover redemptions, expenses, and other liquidity needs at all times. The fund could stake up to 100% of its ETH under normal market conditions, with no minimum staking threshold set.
Fidelity would retain 85% of gross staking rewards, while the remaining 15% would be split among the fund sponsor, custodians, and node operators. Net staking rewards would first go toward covering the fund's operating expenses, followed by quarterly cash distributions to investors.
The move follows the November 2025 IRS safe harbor bulletin, which made this structure possible for existing ETH funds. The bulletin requires such funds to distribute net staking rewards to investors at least every quarter.