Fidelity grants Ethereum and Solana ETFs authority to stake up to 100% of assets

Fidelity has updated its prospectuses for the Fidelity Ethereum Fund (FETH) and the Fidelity Solana Fund (FSOL), granting the exchange-traded products the authority to stake up to 100% of their underlying cryptocurrency under normal conditions. While the 100% figure serves as a maximum ceiling, there is no minimum staking requirement, allowing sponsor FD Funds Management to keep assets unstaked to manage liquidity, expenses, and redemptions.

To manage potential delays in network exits, the funds have outlined a layered redemption framework. If unstaking cannot be completed within standard settlement windows, the sponsor may temporarily extend settlements or, as a discretionary measure, provide cash in lieu of cryptocurrency.

As of June 30, the FSOL fund reported that 99.64% of its assets were staked. The FETH fund, which reported $758.609 million in net assets as of June 30, did not disclose a specific staked amount in its report, though new prospectuses indicate staking was expected to begin following August 21 amendments.