FUDA IS PROPOSED TO ADD A PLEDGE AND A QUARTERLY BONUS TO THE TAIFENG ETF, AND THE FUND MAINTAINS 85% PLEDGE INCENTIVE

On August 12th, Fuda was preparing to join the ETH pledge and quarterly cash dividends mechanism under the banner of ETF (FETH). FETH currently has net assets of approximately $898 million. According to the revised registration documents, under normal circumstances, the fund may use up to 100 per cent of ETH for pledge, without setting a minimum pledge ratio, and will retain a portion of ETH for redemption, fees and other liquidity needs. Fuda plans to retain 85 per cent of the total pledge incentive and the remaining 15 per cent will be paid to the fund sponsors, trustees and nodal operators. The nodal operators listed in the document include Blockdaemon, Figment and Galaxy. The net proceeds of the pledge will be used as a priority to cover the costs of the Fund, with the remainder being used for quarterly cash allocations. Under the relevant IRS rules, the Fund is required to allocate net pledge proceeds at least once a quarter. Fuda also indicated that, if needed, the Fund might sell part of ETH to raise cash for distribution. The adjustment followed the issuance of the Safeport Rules by the United States Bureau of Revenue in November 2025, which allowed for the pledge of an eligible encrypted trust without losing the tax status of the grantee。