CryptoSlate
Fidelity's FETH and FSOL spot ETFs can now stake up to 100% of their Ethereum and Solana holdings under normal conditions, per Aug. 21 prospectuses filed by sponsor FD Funds Management. FSOL is already operating near that ceiling: 1,675,797 SOL staked out of 1,687,589 held at June 30, a 99.64% staked ratio on $127.079M in net assets. FETH held 476,311 ETH and $758.609M in net assets as of June 30, had not yet begun staking, and the prospectus said staking was expected to start as soon as practicable after Aug. 21.
Why it matters
This is the first US spot crypto ETF framework to combine a 100% staking authority ceiling with a written liquidation ladder. The 100% figure is a cap, not evidence that either fund runs fully staked at all times; FD Funds Management can leave ether and SOL unstaked to cover foreseeable redemptions, expenses, asset protection and its liquidity program. The structural news is what happens when validator exits stall: reserves first, then discretionary extended settlement, then cash in place of crypto, with a sponsor credit facility, direct borrowing of digital assets, validator-position transfers, and liquid-staking-token wrappers listed as future backstops. None of those backstops were active as of Aug. 21, and several depend on legal, tax or exchange-rule changes.
Market impact
Redemption timing diverges sharply by chain. FSOL expects to regain full control of unstaked SOL within roughly two days under normal conditions, without guaranteeing the result. FETH carries no fixed duration: Ethereum validators must leave the active set and pass a mandatory withdrawal sweep before the network releases the ether, and heavy exit demand can lengthen either timeline. Each trust pays aggregate staking fees equal to 15% of gross rewards and retains the remaining 85%, with the retained share available for trust expenses, quarterly cash distributions, redemptions, or additional staking in that stated priority order, though the sponsor can change the order. For ETF allocators the headline yield number matters less than the liquidity assumption the redemption ladder is now anchoring.
Frequently asked questions
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What does the 100% staking authority mean for Fidelity's crypto ETFs?
Under Aug. 21 prospectuses, sponsor FD Funds Management may stake up to 100% of each fund's Ethereum or Solana holdings under normal conditions, while keeping reserves unstaked for foreseeable redemptions, expenses, asset protection and the liquidity program.
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How much ETH and SOL are actually staked in FETH and FSOL today?
FSOL reported 1,675,797 SOL staked out of 1,687,589 SOL held at June 30, a 99.64% staked ratio on $127.079M in net assets. FETH had not begun staking as of its June 30 report, with 476,311 ETH and $758.609M in net assets.
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How long does it take to unstake ETH versus SOL if investors redeem?
FSOL expects to regain full control of unstaked SOL within roughly two days under normal conditions. FETH has no fixed duration because Ethereum validators must leave the active set and pass a mandatory withdrawal sweep, a process that can lengthen during heavy exit demand.
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What happens if Fidelity cannot return crypto to redeeming shareholders?
The prospectus allows the sponsor to extend settlement temporarily, then deliver cash in place of some or all of the crypto owed in an in-kind redemption. Sponsor credit facilities, validator-position transfers, and liquid-staking-token wrappers are listed as future backstops.
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How much of the staking rewards do the ETFs keep?
Each trust pays aggregate staking fees equal to 15% of gross rewards and retains the remaining 85%. The retained share can fund trust expenses, quarterly cash distributions, redemptions, or additional staking, in that stated priority order, though the sponsor may change the order.
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