- Fidelity joins major companies in pursuing SEC permission for a Solana ETF.
- Altcoin ETFs like SOL, DOGE, and ADA acquire momentum in the US.
Cboe BZX Exchange filed a 19b-4 filing with the U.S. Securities and Exchange Commission (SEC) to list Fidelity’s spot Solana (SOL) exchange-traded fund (ETF). The filing, initiated on March 25, follows the registration by Fidelity of a Solana trust in Delaware, another regulatory milestone.
Fidelity is among an expanding list of asset managers seeking to launch spot SOL ETFs. Other companies with such filings include VanEck, Grayscale, 21Shares, Bitwise, and Franklin Templeton. Analysts expect inflows of $3 billion to $6 billion if the ETF is launched, likening its market potential to Bitcoin (BTC) and Ethereum (ETH) ETFs.
Demand for Solana-based investment products is rising on the back of Solana futures contracts, which debuted on the Chicago Mercantile Exchange (CME) on March 17. First-day trading was $12.3 million, lower than Bitcoin’s $102.7 million and Ethereum’s $31 million but in line with market cap-adjusted expectations.
Fidelity’s Spot Solana ETF Advances With SEC Filing
Volatility Shares recently introduced Solana futures ETFs on March 20, expressing interest in Solana ETFs. These are the Volatility Shares Solana ETF (SOLZ) and the 2X leveraged Solana ETF (SOLT). Analysts view these launches as a standard for future spot market demand.
Competition between ETF issuers is increasing. Cboe’s recent application follows its March 12 filing to list Franklin Templeton’s spot Solana ETF. Companies have also asked for altcoin ETFs, including Litecoin (LTC), XRP, Cardano (ADA), Polkadot (DOT), and even Dogecoin (DOGE).
In addition to cryptocurrency ETFs, Canary Capital has also filed for an NFT-tracking ETF to give shareholders exposure to the PENGU token and Pudgy Penguins NFTs. This is an expansion of the ETF market as asset managers continue to find ways around SEC rules and bring investors to digital asset-backed funds.
The SEC’s strategy in regulating cryptocurrency has greatly shifted during the administration of President Donald Trump. While the SEC, during the administration of former President Joe Biden had launched over 100 enforcement actions against crypto firms, the regulator has since become more lenient. This was seen with the 2024 approval of spot Bitcoin and Ether ETFs, which opened the door for future approval of other altcoin ETFs.
Issuers are not only positioning themselves for regulatory approval but also positioning themselves for modification of current ETF structures, including staking features, in-kind redemptions, and derivatives-based strategies. These changes would further embed cryptocurrency into mainstream financial markets.
As the political and regulatory environment is shifting under President Donald Trump’s watch, everyone in the industry is waiting with bated breath to see what the SEC has in store regarding these new uses. If authorized, Fidelity’s spot Solana ETF can lead the charge to wider usage of altcoin ETFs for Americans.
