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A new report cited by Wu Blockchain informed that Fidelity, the entity behind the fourth-largest Ethereum ETF by AUM, plans to add staking and quarterly cash distributions to its FETH.<\/p>\n
It added that the exchange-traded fund tracking the performance of the largest altcoin can stake up to 100% of its ETH holdings “under normal conditions.”<\/p>\n
There will be no minimum requirement, but the fund will retain some ETH for redemptions, expenses, and other liquidity needs. It will retain 85% of gross staking rewards, and the remaining will be paid to the sponsor, custodians, and node operators.<\/p>\n
The report further noted that net rewards will first cover fund expenses, with the remainder distributed quarterly in cash. It’s worth noting that the ETF may sell some Ether to fund distributions if necessary, the report concluded<\/a>.<\/p>\n Fidelity’s move comes after BlackRock debuted<\/a> a new staking Ethereum ETF called ETHB in March. The first-day trading volume was north of $15 million and opened<\/a> with $100 million in assets. ETHB is currently the fifth-largest Ethereum ETF, with $577 million in net assets, according to SoSoValue.<\/p>\n Fidelity’s FETH is a spot above, holding nearly $900 million in net assets under management, while BlackRock’s main fund leads far ahead with $5.6 billion.<\/p>\n Earlier this year, Fidelity tapped<\/a> Ethereum to launch its own stablecoin called Fidelity Digital Dollar (FIDD), which will be pegged 1:1 to the greenback and backed by reserves.<\/p>\n The post Fidelity’s Ethereum ETF to Offer Staking and Quarterly Cash Payouts: Report<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\n
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