Fidelity has identified Blockdaemon, Figment and Galaxy Digital Trading Cayman as the intended node operators that will run the validator infrastructure.
The 85% allocated to the fund would not be paid directly to shareholders. The proceeds would first be used to cover the fund’s operating expenses, with any remaining amount distributed to investors in cash on a quarterly basis, subject to the applicable tax treatment for the fund’s grantor-trust structure.
The distributions would not be guaranteed. If the fund does not have sufficient cash to make a distribution, it could sell ETH to raise the necessary funds.
Who Would Custody the Staked ETH?
Fidelity has entered into new custody arrangements with Anchorage Digital Bank and BitGo Bank & Trust for the fund’s staked assets.
The custodians would hold the private keys associated with the assets, while the designated node operators would handle validator operations. The arrangement separates custody of the assets from the operation of the validators.
Fidelity’s ability to begin staking would remain subject to the SEC declaring the amended registration statement effective.
Fidelity Follows Other Ethereum ETF Issuers
Fidelity’s proposal comes as U.S. asset managers increasingly look to staking as a way to add potential income to Ethereum investment products.
Grayscale began staking through its Grayscale Ethereum Staking ETF (ETHE) in October 2025 and began distributing staking proceeds to shareholders in January 2026. 21Shares also began distributing staking rewards from its Ethereum ETF products that month.
BlackRock took a different approach. Rather than adding staking to its existing spot Ethereum ETF, the asset manager launched the iShares Staked Ethereum Trust ETF (ETHB) in March 2026 as a separate product.
Why This Matters
Adding staking to an established spot ETF like FETH could reshape competition among Ethereum ETF issuers by turning a price-tracking product into a yield-generating one. The move also signals growing regulatory comfort with staking inside existing grantor trust structures.
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People Also Ask:
What is FETH? FETH is the Fidelity Ethereum Fund, a U.S. spot Ethereum ETF launched in July 2024 that tracks the price of ETH.
When would FETH start staking? Staking can only begin after the SEC declares Fidelity’s amended registration statement effective; no date has been confirmed.
How much of FETH’s ETH could be staked? Up to 100% under normal market conditions, though a portion will be reserved for redemptions and liquidity.
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