Fidelity Enables Up to 100% Staking for Ethereum and Solana ETFs

Fidelity has introduced a staking structure that allows its Ethereum and Solana exchange-traded funds (ETFs) to stake up to 100% of their holdings. The Fidelity Ethereum Fund (FETH) and Fidelity Solana Fund (FSOL) have implemented this new structure, which enables them to earn rewards from staking without sacrificing any assets.

The actual staking ratio between the two funds differs. As of June, FSOL had staked 99.64% of its Solana holdings, while FETH plans to begin staking as soon as possible after August 21. The staking rewards will be distributed in a way that benefits the funds: 15% will go towards fees, and the remaining 85% will accrue to the funds for various uses such as expenses, cash distributions, redemptions, and additional staking.

Fidelity has also outlined measures to ensure liquidity in case of staking delays. If unstaking is not completed within the normal settlement period, the funds may temporarily extend settlement or pay part or all of redemption proceeds in cash instead of in kind.