Fidelity Plans to Add Staking Features and Quarterly Cash Distributions to Ethereum ETF

TechFlow News, August 12, according to CoinDesk reports, Fidelity plans to add ETH staking functionality and a quarterly cash distribution mechanism to its spot Ethereum ETF—Fidelity Ethereum Fund (FETH). FETH currently has net assets of approximately $898 million, and under normal circumstances, up to 100% of held ETH can be staked. According to the arrangement, Fidelity will retain 85% of the staking rewards, with the remaining 15% distributed to the fund sponsor, custodian, and node operators (including Blockdaemon, Figment, and Galaxy).

Net staking rewards will be prioritized to cover fund operating expenses, with the remaining portion distributed to investors in cash on a quarterly basis. This move is driven by a safe harbor announcement released by the U.S. Internal Revenue Service in November 2025, which allows eligible crypto trusts to engage in staking without losing their grantor trust tax status.