Fidelity Plans to Add Staking and Quarterly Dividend Features to Its Ethereum ETF, Fund to Retain 85% of Staking Rewards

BlockBeats News, August 12. Fidelity is preparing to introduce ETH staking and quarterly cash dividends for its Ethereum ETF (FETH). The net asset value of FETH is currently around $8.98 billion. According to the amended prospectus, under normal circumstances, the fund can stake up to 100% of its ETH, with no minimum staking ratio set, and will reserve some ETH for redemptions, fees, and other liquidity needs.

Fidelity plans to retain 85% of the total staking rewards, while the remaining 15% will be paid to the fund sponsor, custodian, and node operators. The listed node operators in the document include Blockdaemon, Figment, and Galaxy.

The staking net income will be primarily used to cover the fund's expenses, with the remaining portion allocated for quarterly cash distributions. Based on relevant IRS rules, the fund is required to distribute net staking income at least once per quarter. Fidelity also stated that if necessary, the fund may sell some ETH to raise cash for distribution.

This adjustment comes after the IRS released a safe harbor rule in November 2025, allowing eligible crypto trusts to stake without losing the grantor trust tax status.