Fidelity’s $900M Ethereum fund to launch staking, payouts
6.8 Investments Fidelity will add Ethereum staking and quarterly cash payouts to its $900M fund, retaining 85% of rewards for investors and allocating 15% to service providers. Up to 100% of ETH may be staked.
Fidelity is preparing to introduce Ethereum staking and quarterly cash distributions to its nearly $900 million Fidelity Ethereum Fund (FETH). Under normal conditions, the fund may stake up to 100% of its ETH holdings, while keeping some assets available for redemptions, expenses, and liquidity needs. According to amended registration statements, 85% of gross staking rewards will be retained by the fund for investors, with the remaining 15% allocated to service providers such as the sponsor, custodians, and node operators, including Blockdaemon, Figment, and Galaxy. Net staking rewards will first be used to cover fund expenses. Any remaining rewards after expenses will be distributed to investors as quarterly cash payments. This move follows similar initiatives by other major funds and comes after regulatory clarification allowing crypto trusts to stake assets without losing their tax status. Fidelity plans to begin staking as soon as the prospectus takes effect, with no minimum staking requirement.
