Fidelity is preparing to add staking and quarterly cash dividend features to its $ETH ETF (FETH), with net assets of approximately $898 million.
Under the amended registration statement, FETH may stake up to 100% of its Ethereum holdings. There is no minimum staking requirement, but the fund will retain some ETH to meet redemption and liquidity needs. Fidelity will receive 85% of staking proceeds, while the remaining 15% will be allocated to the sponsor, the custodian, and three node operators—Blockdaemon, Figment, and Galaxy.
Net staking proceeds will first be used to cover the fund’s operating expenses, and any remaining amount will be returned to investors in the form of quarterly dividends. Fidelity has also said it may sell some ETH, if necessary, to raise funds for the dividends.
Prior to this, Grayscale and 21Shares had already added staking capabilities to their Ethereum funds, while BlackRock chose another path—launching a standalone staking product directly. The differing attitudes and approaches to staking among major asset managers are reshaping the competitive landscape for Ethereum ETFs. #EthereumETF#CryptoStaking#Fidelity
Under the amended registration statement, FETH may stake up to 100% of its Ethereum holdings. There is no minimum staking requirement, but the fund will retain some ETH to meet redemption and liquidity needs. Fidelity will receive 85% of staking proceeds, while the remaining 15% will be allocated to the sponsor, the custodian, and three node operators—Blockdaemon, Figment, and Galaxy.
Net staking proceeds will first be used to cover the fund’s operating expenses, and any remaining amount will be returned to investors in the form of quarterly dividends. Fidelity has also said it may sell some ETH, if necessary, to raise funds for the dividends.
Prior to this, Grayscale and 21Shares had already added staking capabilities to their Ethereum funds, while BlackRock chose another path—launching a standalone staking product directly. The differing attitudes and approaches to staking among major asset managers are reshaping the competitive landscape for Ethereum ETFs. #EthereumETF#CryptoStaking#Fidelity