Fidelity Plans to Add Staking Features and Quarterly Cash Distributions to Ethereum ETF
According to CoinDesk, Fidelity plans to add ETH staking functionality and a quarterly cash distribution mechanism to its spot Ethereum ETF—the Fidelity Ethereum Fund (FETH). FETH currently has a net asset value of approximately $898 million and can stake up to 100% of its held ETH under normal circumstances. Under the arrangement, Fidelity will retain 85% of the staking rewards, with the remaining 15% allocated to the fund sponsor, custodian, and node operators (including Blockdaemon, Figment, and Galaxy). Net staking rewards will be prioritized to cover fund operating expenses, with the remainder distributed to investors as cash on a quarterly basis. This move is driven by a safe harbor announcement released by the U.S. Internal Revenue Service in November 2025, which allows eligible crypto trusts to stake without losing their grantor trust tax status.
