Fidelity plans to add staking and quarterly dividend distribution features to its Ethereum ETF, with the fund retaining 85% of staking rewards.
1 hours ago
Fidelity is preparing to add ETH staking and quarterly cash distribution mechanisms to its Ethereum ETF (FETH). FETH currently holds approximately $898 million in net assets. According to revised registration documents, under normal circumstances, the fund may allocate up to 100% of its ETH for staking, with no minimum staking ratio set, and will retain a portion of ETH for redemptions, fees, and other liquidity needs. Fidelity plans to retain 85% of total staking rewards, with the remaining 15% going to the fund’s sponsor, custodian, and node operators. The listed node operators include Blockdaemon, Figment, and Galaxy. Net staking income will first be used to cover the fund’s expenses, with the remainder allocated for quarterly cash distributions. Per relevant IRS rules, the fund is required to distribute net staking income at least once per quarter. Fidelity also noted that the fund may sell a portion of its ETH to raise cash for distributions if needed. The adjustment follows the U.S. Internal Revenue Service (IRS)’s November 2025 safe harbor rule, which allows eligible crypto trusts to conduct staking without losing their grantor trust tax status.
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As $BTC rose, gambler 0xff84's 1,793 $BTC($114.4M) short came very close to liquidation. The gambler closed part of t...
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A Bitcoin (BTC) whale holding $114.4 million in short positions has reduced some of its positions to avoid liquidation, with its current short position standing at approximately $98.97 million.
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