financemagnates.com
The race to launch the first US spot Solana exchange-traded fund (ETF) is gaining momentum. Cboe BZX Exchange has requested that the Securities and Exchange Commission (SEC) list Fidelity’s proposed Solana ETF.
The filing, made on March 25, adds Fidelity to a growing list of asset managers looking to bring Solana-based investment products to the market. However, the SEC’s approval remains the final hurdle before trading can commence.
Cboe’s move comes shortly after it filed to list another spot, Solana ETF, sponsored by Franklin Templeton on March 12. Several asset managers, including Grayscale, VanEck, 21Shares, Canary, and Bitwise, have also submitted applications for similar products.
Meanwhile, the Chicago Mercantile Exchange (CME) introduced Solana futures contracts on March 17, further indicating institutional demand for SOL-related financial products.
Current Solana ETF Landscape
While US investors currently lack access to spot Solana ETFs, derivative-based products have already entered the market. In March, Volatility Shares launched the first ETFs providing exposure to Solana through financial derivatives.
The Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT) allow investors to gain exposure to SOL’s price movements, with the latter offering 2x leverage.
The SEC has historically been hesitant to approve altcoin ETFs, but the introduction of spot Bitcoin ETFs earlier this year signaled a potential shift in regulatory approach.
The SEC’s stance on cryptocurrency ETFs has evolved following a change in administration. Under former President Joe Biden, the agency took a tough stance, launching over 100 lawsuits against crypto firms. However, following the beginning of President Donald Trump’s second term in January, regulators appear to be softening their approach.
In 2024, the SEC approved several spot Bitcoin ETFs, paving the way for further cryptocurrency-based investment vehicles. The decision on Solana ETFs could mark the next step in broadening access to digital asset funds.
Fidelity’s Growing Crypto Ambitions
Fidelity has been expanding its presence in the cryptocurrency sector for years. In 2023, the firm launched two spot crypto ETFs: the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH).
With many of its clients already holding crypto assets, Fidelity’s push for a Solana ETF aligns with the firm’s long-term strategy. If approved, the fund would provide investors with direct exposure to Solana’s price movements without requiring them to hold the asset directly.
As institutional interest in Solana grows and regulatory sentiment shifts, the likelihood of spot Solana ETFs gaining approval in 2024 appears stronger than ever.