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Fidelity plans staking and quarterly payouts for its Fidelity Ethereum Fund

The Fidelity Ethereum Fund has $898.0 million in net assets, and Fidelity would retain 85.0% of gross staking rewards while distributing net rewards quarterly.

Reported · Written up by our desk · Ethereum

CoinDesk reports that Fidelity is preparing to add staking to its spot ether ETF, the Fidelity Ethereum Fund (FETH), along with quarterly cash distributions.

According to the report, the fund would be able to stake up to 100.0% of its ether under normal conditions, with Fidelity not setting a minimum, and it would keep some ETH available to cover redemptions, expenses, and other liquidity needs.

CoinDesk says the plan follows an IRS safe harbor bulletin issued in November 2025, which allows qualifying crypto trusts to stake assets without losing grantor-trust tax status. The fund would keep 85.0% of gross staking rewards, while the remaining 15.0% would go to service providers, including fund sponsor, custodians, and node operators.

The report also notes that net staking rewards would first cover fund expenses and then fund quarterly cash distributions, with the rules requiring net rewards to be distributed at least quarterly. Blockdaemon, Figment, and Galaxy are named as the trust’s node operators.

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