Fidelity's Crypto ETFs Stake Up to 100%, but Face Exit Delay Risks

Fidelity's FETH and FSOL staking plans grant its Ethereum and Solana exchange-traded products authority to stake up to 100% of their crypto under normal conditions, but pair that ceiling with a layered plan for meeting redemptions when network exits take too long.

The matching framework appears in Aug. 21 prospectuses for the Fidelity Ethereum Fund (FETH) and Fidelity Solana Fund (FSOL). Neither fund has a minimum staking requirement, allowing sponsor FD Funds Management to keep ether or SOL unstaked for foreseeable redemptions, expenses, asset protection, and its liquidity program.

The 100% figure is an authority ceiling, not evidence that 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 quarterly report put net assets at $127.079 million and its trailing 30-day staked percentage at 99.64%.

FETH was at a different point, listing 476,311 ether in its June 30 report but not disclosing a current staked amount. The new prospectus for FETH said staking was expected to begin as soon as practicable after Aug. 21.