Fidelity's FETH and FSOL ETPs Authorized to Stake Up to 100% of Crypto

Fidelity has introduced staking plans for its Ethereum and Solana exchange-traded products (ETPs), FETH and FSOL. The prospectuses show that both funds are authorized to stake up to 100% of their respective cryptocurrencies, with no minimum staking requirement.

According to the quarterly report by FSOL, as of June 30, 99.64% of its SOL assets were staked. However, FETH did not disclose any current staked amount in its prospectus. The funds' sponsor, FD Funds Management, can choose to keep ether or SOL unstaked for future redemptions, expenses, asset protection, and liquidity program.

The redemption process involves a layered plan, where reserves are the first buffer. If they are insufficient and unstaking cannot be completed within the standard settlement window, the sponsor may extend settlement temporarily. In extreme cases, cash-in-lieu may be used as a discretionary backstop to meet redemptions when network exits take too long.