Fidelity Investments is seeking regulatory approval to add Ether staking and quarterly cash distributions to its $898 million Fidelity Ethereum Fund (FETH), potentially allowing the fund to stake up to 100% of its Ether holdings under normal conditions.
The fund would retain 85% of gross staking rewards with the remaining 15% going to its sponsor, custodians and node operators, including Blockdaemon, Figment, and Galaxy. Net rewards would first cover expenses before being distributed to investors at least quarterly.
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Fidelity said the fund could also sell some Ether to raise cash for the payouts.
The move follows similar staking initiatives by Grayscale and 21Shares as asset managers look to add yield to U.S. spot ether ETFs.
