Fidelity Clears Path for 100% Staking on Ethereum and Solana ETF Holdings
Fidelity has secured regulatory approval to stake up to 100% of its Ethereum (FETH) and Solana (FSOL) exchange-traded fund holdings, a move that could reshape how these products generate returns. The asset manager can now actively stake the underlying tokens, earning rewards that can be distributed to fund holders.
This approval comes after months of regulatory discussions and reflects a growing acceptance of staking as a legitimate yield-generating mechanism within the ETF structure. As of June 30, FSOL was already staking 99.64% of its holdings, indicating that the fund had been operating near its new limit even before the formal approval.
The amended prospectuses also detail potential withdrawal-delay risks associated with unstaking tokens. For example, unstaking SOL takes approximately two days, while ETH unstaking times can vary significantly depending on validator queue lengths.