Altcoins News

Story: Fidelity Ethereum Fund Adds Staking With 85% Reward Split for FETH Holders

By Jean-Luc Maracon

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Where FETH Stood Before This Filing. The fund's been around since July 2024. As of August 11, FETH had pulled in roughly $2.

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The Competitive Race for Ethereum Staking ETFs. Grayscale got there first. It pioneered staking in U.S.

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Fidelity is moving. The asset manager filed with the SEC to add staking to its Ethereum ETF, the Fidelity Ethereum Fund — ticker FETH — and the structure is pretty…

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The reward split is 85/15. Fidelity keeps 85% of staking rewards for the fund, while 15% goes toward covering staking fees.

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The fund's been around since July 2024. As of August 11, FETH had pulled in roughly $2.13 billion in cumulative net inflows since launch, per Farside Investors. Not bad.

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But it's been playing catch-up on staking. Ryne Mauck, a contributor at Seeking Alpha, put it bluntly: FETH's lack of staking had put it at a "relative disadvantage" next to…

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Grayscale got there first. It pioneered staking in U.S. spot crypto ETFs back in October 2025 — a meaningful head start.

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Bitwise tried a different path. The firm initially sought to add staking to its own Ethereum ETF but pulled that proposal in September 2025.

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Fidelity, one of the largest asset managers in the world, is now catching up fast. The filing puts it in line with Grayscale and BlackRock, and the 85% reward retention structure…

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More context: BitMine Pushes Ethereum Stack Past 5.8 Million ETH with 7,391-ETH Buy

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Staking in crypto ETF products is kind of a big deal right now. Ethereum validators earn yield by locking up ETH to help secure the network, and that yield gets passed through to…

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Fidelity's move probably won't be the last. The competitive pressure in the U.S. crypto ETF space has been building since spot Bitcoin ETFs launched and pulled in enormous inflows.

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The 15% fee cut for staking services is worth watching too. Staking infrastructure isn't free — validators, slashing risk management, and operational overhead all cost money.

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Quarterly cash distributions are an interesting addition. Most ETF investors are used to price-only exposure — you make money when the token goes up, you lose when it goes down.

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See also: TRON Logs $2.1 Trillion in USDT Transfers as TRX Staking Slides

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