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Fidelity Moves to Add Staking and Quarterly Payouts to Ethereum ETF

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Fidelity has filed an amended registration statement seeking to enable staking of the ether held in its spot Ethereum ETF (FETH) and to distribute staking rewards as quarterly cash payments to shareholders, pending SEC approval.

FETH currently holds approximately $898–$900 million in net assets. Under the proposed structure, the fund could stake up to 100% of its ETH under normal market conditions, while retaining sufficient unstaked ether to meet redemptions, expenses, and other liquidity needs. No minimum staking threshold is set.

The amendment updates the fund’s objective to target the Fidelity Ethereum Reference Rate plus staking yield (net of fees). Gross staking rewards would be split with the fund retaining 85% and the remaining 15% allocated to the sponsor, custodians, and node operators (including Blockdaemon, Figment, and Galaxy). Net rewards would first cover fund expenses, with any remainder distributed to shareholders as quarterly cash payouts. The fund may sell some ETH if needed to generate cash for those distributions. Distributions are not guaranteed.

The move follows an IRS safe-harbor framework that allows qualifying crypto trusts to stake assets without losing grantor-trust tax status. Fidelity joins other issuers that have pursued staking features in existing Ethereum products, while some competitors have opted for separate staking-focused vehicles.

Successful approval would mark a meaningful step toward yield-bearing regulated Ethereum products in the U.S., potentially enhancing the competitiveness of spot ETH ETFs by passing through a portion of network staking rewards to shareholders in cash form.

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ChangeNOW Announces NOW AI After Resolving Website Integration Vulnerability

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The post ChangeNOW Announces NOW AI After Resolving Website Integration Vulnerability appeared first on Coinpedia Fintech News

On October 15, with the help of independent security researchers, we found a vulnerability affecting one of the integrations used on the ChangeNOW website. The vulnerability has now been fixed. We currently have no evidence that it was exploited. But we also can’t assume that the researchers who reported it were the only ones to …

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