Fidelity Ethereum Fund Announces Staking Program and New Custodial Agreements

What Happened
Fidelity Ethereum Fund (the “Trust”) filed an 8-K (Aug 10, 2026) reporting that on August 7, 2026 it entered custodial services agreements with Anchorage Digital Bank NA and BitGo Bank & Trust, N.A. and an Amended and Restated Sponsor Agreement to enable staking of the Trust’s ether. The Trust also entered a Third Amended and Restated Trust Agreement with CSC Delaware Trust Company to permit staking. The Sponsor (FD Funds Management LLC) expects to begin staking as soon as practicable following the effective date of the Trust’s Registration Statement (filed July 24, 2026).

Key Details

• Custodians: Anchorage Digital Bank NA and BitGo Bank & Trust, N.A. will custody and safekeep the Trust’s ether and be used to facilitate staking with trusted node operators. Ongoing custody arrangements with Fidelity Digital Assets, N.A. remain unchanged.
• Fee split: The Trust will retain 85% of staking rewards; 15% of staking rewards will be paid as fees and shared among the Sponsor, Custodians, Node Operators, or other third parties.
• Governance change: A Third Amended and Restated Trust Agreement was executed (Aug 7, 2026) to allow for staking activities.
• Distributions: The Trust intends to make quarterly cash distributions to shareholders from net staking income after expenses. To fund distributions, the Trust may sell staking rewards and/or a portion of its ether, which could affect the Trust’s ether exposure and the market price or NAV of the shares.

Why It Matters
This 8-K signals a material change in how the Fidelity Ethereum Fund will generate and distribute income by actively staking ether. Staking creates a new source of income (staking rewards) but introduces operational elements (custodial arrangements, fee sharing, and reliance on node operators) and potential market effects if the Trust sells rewards or ether to pay distributions. Investors should review the Registration Statement and the Trust’s disclosures on staking risks to understand how staking could affect yield, fees, and the Trust’s ether exposure.