Fidelity Goes All-In on Staking for Two Crypto Funds
Fidelity's crypto exchange-traded products have opened up to full staking on FETH and FSOL, allowing them to put every coin in their vaults to work. The prospectuses covering these funds detail a tiered list of fallbacks for network exits that drag on.
The 100% number is a ceiling, not a status report. Sponsor FD Funds Management can keep ether or SOL sitting idle to cover foreseeable redemptions, expenses, asset protection, and its liquidity program.
FSOL sits nearest the ceiling, with 1,675,797 SOL staked against 1,687,589 SOL held, carrying a fair value of $126.3 million as of June 30. FETH disclosed no staking whatsoever, faces an open-ended exit queue, and has a launch date characterized only as 'as soon as practicable.'
The sponsor is allowed to stretch settlement on a temporary basis if reserves come up short or unstaking fails to wrap up within the standard settlement window.