ME News reports that on August 12 (UTC+8), Fidelity is preparing to introduce staking and quarterly cash distributions for its Fidelity Ethereum Fund (FETH), which has net assets of approximately $898 million. According to the amended registration statement, FETH may stake up to 100% of its Ethereum holdings, with no minimum requirement, while retaining a portion of ETH for redemptions and liquidity needs. Previously, Grayscale and 21Shares have integrated staking into their Ethereum funds, while BlackRock has launched a separate staking product. Under the proposed structure, Fidelity will retain 85% of the staking rewards, with the remaining 15% allocated to the sponsor, custodian, and node operators (Blockdaemon, Figment, Galaxy). Net staking proceeds will first cover fund operating expenses, with any surplus distributed as quarterly dividends; Fidelity also indicated it may sell a portion of its ETH to fund these distributions. (Source: Foresight News)
Fidelity to Add Staking and Quarterly Dividends to $898M Ethereum Fund
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Summary
Fidelity is set to introduce staking and quarterly dividends to its $898 million Fidelity Ethereum Fund (FETH), according to MetaEra. The fund can stake up to 100% of its ETH holdings, with no minimum requirement, while maintaining a reserve of ETH for redemptions. Fidelity will retain 85% of staking rewards, with the remaining portion distributed among the sponsor, custodian, and node operators. Net rewards will first cover operational expenses, after which dividends will be funded. Fidelity may sell ETH to generate funds for dividend payments. This initiative could enhance the fund’s risk-to-reward profile, providing investors with a clearer structure for support and resistance levels in returns.
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