Fidelity Ethereum ETF to Add Staking and Quarterly Dividends

Fidelity's $898M ETH fund plans full staking capability and quarterly payouts, retaining 85% of rewards for costs before distributing surplus.

Woofun AI reports that Fidelity is preparing to introduce staking and quarterly cash dividend mechanisms for its Fidelity Ethereum Fund (FETH), which holds approximately $898 million in net assets. The revised registration statement indicates the fund can stake up to 100% of its Ethereum holdings without a minimum requirement, though some ETH will be retained to ensure liquidity for redemptions.

Fidelity plans to retain 85% of staking rewards, while the remaining 15% will be distributed to initiators, custodians, and node operators including Blockdaemon, Figment, and Galaxy. Net staking earnings will first cover operating costs, with any surplus allocated as quarterly dividends. The fund may also sell some ETH to raise funds for these distributions. This follows similar moves by Grayscale and 21Shares, while BlackRock has launched separate staking products.