Fidelity's Ethereum Fund Now Offers Staking and Quarterly Cash Distributions

Fidelity is expanding its Ethereum-based fund to include staking and quarterly cash distributions. The $898 million Fidelity Ethereum Fund (FETH) will now be able to stake up to 100% of its Ether holdings under normal conditions.

The fund's custodians, Blockdaemon, Figment, and Galaxy Digital Trading Cayman, will work with the node operators to place the assets into Ethereum validators. Fidelity will retain control of the private keys, while the node operators handle the validator infrastructure.

FETH will earn staking rewards, which will be subject to a 15% fee shared among the sponsor, custodians, and node operators. The remaining 85% will go towards fund expenses and liabilities before being distributed to shareholders in quarterly cash payments.