Fidelity has received regulatory approval to stake up to 100% of the assets held in its spot Ethereum (FETH) and Solana (FSOL) exchange-traded funds, according to amended prospectuses first reported by CryptoSlate. The move allows the asset manager to actively stake underlying tokens, integrating proof-of-stake rewards into traditional financial products.
As of June 30, FSOL was already staking 99.64% of its holdings, essentially operating near the new limit before formal approval. FETH is expected to begin staking soon after a rule change on Aug. 21. The approval follows months of regulatory discussions and reflects growing acceptance of staking as a legitimate yield-generating mechanism within ETF structures.
The amended filings highlight liquidity risks. Unstaking SOL takes approximately two days, while ETH unstaking times can vary significantly depending on validator queue lengths. During network congestion, large ETF redemption requests could face delays, potentially impacting the fund's ability to meet redemption obligations. The prospectus warns such delays could lead to deviations from the ETF's net asset value or require the fund to borrow or sell other assets.
Meanwhile, U.S. spot Solana staking ETFs have collectively surpassed $1 billion in cumulative net inflows, reaching approximately $1.06 billion, according to Crypto Briefing. Bitwise's BSOL fund dominates with roughly 81% of total inflows, about $861 million, and holds more than 8.46 million SOL staked through a solution developed with Solana infrastructure provider Helius.
The milestone highlights investor appetite for yield-generating crypto products following the SEC's cautious evolution on staking in ETFs. While Bitcoin ETFs have seen massive inflows, Solana ETFs are being watched as a test case for whether altcoin staking products can attract sustained institutional interest. Analysts caution that staking rewards introduce risks such as slashing and validator downtime.
The regulatory shift could pave the way for other asset managers to launch staking-enabled ETFs, influencing how issuers structure crypto products and how regulators view staking in the future.
