Fidelity plans to add ETH staking and a quarterly cash distribution mechanism to its spot Ether exchange-traded fund, the Fidelity Ethereum Fund (FETH), according to CoinDesk. The fund currently has about $898 million in net assets and, under normal conditions, may stake up to 100% of the ETH it holds. Under the proposed arrangement, Fidelity would retain 85% of staking rewards, while the remaining 15% would be allocated to the fund sponsor, custodian, and node operators, including Blockdaemon, Figment, and Galaxy. Net staking income would first be used to cover fund operating expenses, with any remainder distributed to investors in cash on a quarterly basis. CoinDesk said the move was driven by a safe harbor notice issued by the U.S. Internal Revenue Service in November 2025, which allows eligible crypto trusts to stake assets without losing grantor trust tax status.
Fidelity plans to add ETH staking and a quarterly cash distribution mechanism to its spot Ether exchange-traded fund, the Fidelity Ethereum Fund (FETH), according to CoinDesk.
FETH currently has about $898 million in net assets and, under normal conditions, may stake up to 100% of the ETH it holds.
Under the arrangement, Fidelity would retain 85% of staking rewards. The remaining 15% would be allocated to the fund sponsor, custodian, and node operators, including Blockdaemon, Figment, and Galaxy.
Net staking income would first go toward covering the fund’s operating expenses. Any remaining amount would then be distributed to investors in cash on a quarterly basis.
CoinDesk said the plan was driven by a safe harbor notice issued by the U.S. Internal Revenue Service in November 2025. The notice allows eligible crypto trusts to stake assets without losing their grantor trust tax status.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
