Fidelity plans to stake up to 100% of the ETH held by its FETH Ethereum ETF once its amended registration statement becomes effective. The fund reached $898.71 million in net assets as of August 11, with cumulative net inflows of $2.12 billion. Staking rewards will be split 85% for FETH and 15% for service providers including Blockdaemon, Figment and Galaxy Digital. The firm plans to distribute staking income quarterly in cash, but selling these rewards or existing ETH holdings to fund distributions would reduce the fund’s ETH exposure.
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