Fidelity plans to add stakes to its Ether fund, with 85% of rewards retained by FETH and quarterly cash distributions to investors.
Fidelity Investments plans to add staking to its spot ether exchange-traded product, the Fidelity Ethereum Fund (FETH), according to a Tuesday filing with the US Securities and Exchange Commission (SEC).
Asset Manager said FETH can normally hold up to 100% of its Ether, excluding ETH reserved for redemptions, expenses and liquidity needs.
The fund will retain 85% of staking rewards, 15% will go toward staking fees and plan quarterly cash distributions, although payouts are not guaranteed. Fiduciary expects staking to commence “as soon as practicable” after the prospectus date. The preliminary prospectus will be subject to change before the registration statement becomes effective.
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