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Fidelity ETFs can stake up to 100% while building redemption backstops

FSOL reported staking 99.6% of its SOL at June 30, while FETH disclosed no current staked ether amount and did not set a fixed Ethereum exit timeline.

Reported · Written up by our desk · Market Structure

Fidelity has outlined staking authority for its crypto exchange-traded products, saying its Fidelity Ethereum Fund (FETH) and Fidelity Solana Fund (FSOL) can stake up to 100% of their holdings under normal conditions. The filings also describe a layered approach to handle redemptions if network exits take longer than standard settlement expectations.

For FSOL, the fund reported 1,675,797 SOL staked out of 1,687,589 SOL held at June 30, with a trailing 30-day staked percentage of 99.64% and net assets of $127.079 million. The stake had a fair value of $126.3 million.

FETH was at a different point in its June 30 reporting, listing 476,311 ether and $758.609 million in net assets without a line showing staked ether. Fidelity said staking was expected to begin as soon as practicable after Aug. 21, based on an August amendment to its trust and custody arrangements, and it did not provide a guaranteed Ethereum exit timeline.

The prospectuses describe discretionary buffers and contingencies for meeting redemptions, including reserves first, temporary settlement extensions if unstaking cannot finish within the standard window, and potential cash in place of crypto in an in-kind redemption if exiting still is not practicable within a reasonable extended period. Fidelity also listed potential future backstops such as credit or direct asset borrowing, along with mechanisms that could involve liquid staking tokens or tradable rights to staked assets, and noted timing risk can differ between Solana and Ethereum.

Latest closeEthereum $2,483.75 ▲0.8%|Solana $98.15 ▲2.8%

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