Fidelity is planning to add staking and quarterly cash payouts to its $898 million Fidelity Ethereum Fund (FETH), one of the largest spot ether ETFs in the U.S.
Under normal conditions, the fund could stake as much as 100% of its ETH holdings. Staked ETH would be managed by Blockdaemon, Figment and Galaxy as node operators, with Fidelity retaining 85% of gross staking rewards for distribution as quarterly cash payouts to investors.
### DATES
– November 2025
### PEOPLE
– None
### ORGANISATIONS
– Fidelity: A large financial services company managing the FETH fund.
– IRS (Internal Revenue Service): Issued a safe harbor bulletin in November 2025, allowing crypto trusts to stake assets without losing their grantor-trust tax status.
– Grayscale and 21Shares: Other cryptocurrency funds that have added staking to existing ether funds.
### KEY FACTS
– FETH has $898 million in net assets.
– The fund could stake up to 100% of its ETH holdings under normal conditions.
– Staked ETH would be managed by Blockdaemon, Figment and Galaxy as node operators.
– Funds must distribute at least quarterly the net staking rewards generated.
### QUOTATIONS
– None
### UNCERTAINTIES
– The specific amount of ETH to be staked has not been determined yet.
Written by Sarah Whitmore
Ethereum Desk
