Fidelity Moves to Add Ethereum Staking and Quarterly Cash Payouts to FETH

TLDR

• Fidelity plans Ethereum staking and quarterly cash payouts for its FETH fund

• FETH could stake up to 100% of its Ether under normal operating conditions now

• Fidelity would retain 85% of staking rewards after its fees paid to providers

• Quarterly cash payouts would depend on staking income, expenses and liabilities

• Fidelity joins Grayscale and BlackRock in expanding US Ethereum staking products

Fidelity plans Ethereum staking and quarterly cash payouts for its Fidelity Ethereum Fund, known as FETH. An Aug. 11 SEC filing would let the fund stake most Ether while keeping liquidity for operations. The $898 million fund would keep 85% of staking rewards after service fees.

Ethereum Staking Plan Expands FETH Strategy

Fidelity amended FETH’s registration statement to permit staking of up to 100% of Ether under normal conditions. The fund would reserve ETH for redemptions, expenses, distributions, and liquidity needs. The asset manager plans to start staking soon after the prospectus becomes effective.

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