Fidelity Grants ETFs Authority to Stake 100%, Details Exit Risks

Fidelity's FETH and FSOL exchange-traded products now hold the authority to stake up to 100% of their crypto under normal conditions. The Aug. 21 prospectuses for the Fidelity Ethereum Fund (FETH) and the Fidelity Solana Fund (FSOL) also outline how the sponsor handles redemptions when network exits take longer than expected.

Neither fund carries a minimum staking requirement. Sponsor FD Funds Management can keep ether or SOL unstaked for foreseeable redemptions, expenses, asset protection, and its liquidity program. The 100% ceiling does not mean both funds are fully staked. FSOL reported 1,675,797 SOL staked out of 1,687,589 SOL held at June 30, with a fair value of $126.3 million. Its net assets stood at $127.079 million, and the trailing 30-day staked percentage was 99.64%.

FETH was in a different position. Its June 30 report listed 476,311 ether and $758.609 million in net assets without a staked-ether line. Fidelity amended the trust and custody arrangements in August, and the new prospectus said staking was expected to begin as soon as practicable after Aug. 21. No current staked amount was disclosed.

Reserves are the first buffer. If reserves are insufficient and unstaking cannot finish within the standard settlement window, the sponsor may extend settlement temporarily. If an exit still is not practicable within a reasonable extended period, the sponsor may deliver cash in place of some or all of the crypto owed in an in-kind redemption. The filings describe these as discretionary options, not automatic protections.