Fidelity moves to add staking and payouts to FETH

TL;DR:

• Fidelity filed an amendment with the SEC to add Ethereum staking to its FETH fund, which manages $898 million in net assets.
• The fund could stake up to 100% of its ETH under normal conditions and would retain 85% of the gross rewards generated.
• Cash payments would be distributed quarterly; Blockdaemon, Figment, and Galaxy would operate as the fund’s validator nodes.

Fidelity filed an amendment to the registration statement of Fidelity Ethereum Fund (FETH) with the U.S. Securities and Exchange Commission (SEC), with the goal of incorporating ETH staking and quarterly cash distributions into the fund, which currently manages $898 million in net assets.

According to the document, the fund could stake up to 100% of its ETH under normal operating conditions, with no minimum requirement established. The asset manager would adjust participation levels based on liquidity needs, network conditions, and redemption requests. The fund would reserve a portion of ETH to cover redemptions, expenses, distributions, and other liquidity obligations.

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