Fidelity plans to add staking features and quarterly cash distributions to its Ethereum ETF

According to CoinDesk, Fidelity plans to add ETH staking functionality and a quarterly cash distribution mechanism for its spot Ethereum ETF—Fidelity Ethereum Fund (FETH). FETH currently has a net asset size of approximately $898 million, and under normal circumstances, up to 100% of the 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 sponsors, custodians, and node operators (including Blockdaemon, Figment, and Galaxy). The net staking rewards will be prioritized to cover the fund's operating expenses, with the remaining portion distributed to investors in cash on a quarterly basis. This move is driven by the safe harbor announcement issued by the IRS in November 2025, which allows eligible crypto trusts to stake without losing their grantor trust tax status.