Fidelity Seeks Approval for Enhanced FETH with Quarterly Cash Distributions

Fidelity Investments is seeking regulatory approval to enhance its $898 million Fidelity Ethereum Fund (FETH) by adding Ether staking and quarterly cash distributions.

The fund's proposed changes would allow it to stake up to 100% of its Ether holdings under normal conditions, retaining 85% of gross staking rewards for distribution to investors at least quarterly.

Fidelity said the fund could also sell some Ether to raise cash for payouts. The move follows similar staking initiatives by Grayscale and 21Shares as asset managers look to add yield to U.S. spot ether ETFs.