Fidelity to Add Staking Yield to $898 Million Ethereum Fund

Fidelity's plan to stake ether in its FETH fund and pay quarterly cash distributions is a significant move for the cryptocurrency market. The $898 million FETH fund will now offer staking yields, making it one of the largest US spot ether products with this feature.

The plan, which was disclosed in a filing with the Securities and Exchange Commission on August 11, allows the trust to stake up to 100% of its ether holdings. The company intends to begin staking as soon as practicable after the prospectus is effective.

Fidelity will keep 85% of the gross staking rewards, while 15% will be paid as fees to the sponsor, custodians, and operators. This move follows a November tax ruling that cleared the path for qualifying investment trusts to stake digital assets without losing grantor-trust status.

Fidelity is not the first company to offer staking in its ether products - Grayscale has already been doing this since 2025. However, Fidelity's plan could have significant implications for the market, as it will allow investors to earn yields on their ether holdings without having to hold the underlying asset.