Fidelity Moves to Add Staking and Payouts to Its Ether ETF

Fidelity is planning to introduce staking and quarterly cash distributions to its Fidelity Ethereum Fund, one of the largest US spot ether ETFs, currently holding $898 million in net assets.

How the Staking Setup Would Work

Under the plan, the fund could stake up to 100% of its ether holdings under normal conditions, though no minimum staking amount was specified. A portion of ether would still be kept available to handle redemptions and cover operational needs. The move comes after a recent tax bulletin cleared the way for qualifying crypto trusts to stake assets without losing their existing tax treatment.

Fidelity Joins Other Issuers in Staking Push

With this update, Fidelity would follow other asset managers that have already added staking to their ether products, while a separate major issuer chose to launch a standalone staking-focused fund instead of modifying its existing one.

Reward Split and Distribution Details

Fidelity would keep 85% of gross staking rewards, with the remaining 15% distributed among the fund sponsor, custodians and node operators. Several firms are named as the trust’s node operators. Net staking rewards would first go toward covering fund expenses, with any remainder distributed to investors on a quarterly basis, in line with regulatory requirements. The fund may also sell portions of its ether holdings if additional cash is needed to fund payouts.