Fidelity Files For Spot Solana ETF On Cboe BZX Exchange

Cboe BZX Exchange has submitted a 19b-4 filing with the U.S. Securities and Exchange Commission (SEC) to list Fidelity’s spot Solana (SOL) exchange-traded fund (ETF). This filing, initiated on March 25, follows Fidelity’s registration of a Solana trust in Delaware, marking another significant regulatory step. Fidelity is part of a growing list of asset managers seeking to launch spot SOL ETFs, which includes VanEck, Grayscale, 21Shares, Bitwise, and Franklin Templeton. The momentum behind altcoin ETFs like SOL, DOGE, and ADA is gaining traction in the U.S. market.

The demand for Solana-based investment products has been bolstered by the debut of Solana futures contracts on the Chicago Mercantile Exchange (CME) on March 17. Although the first-day trading volume was $12.3 million, which is lower than Bitcoin’s $102.7 million and Ethereum’s $31 million, it aligns with market cap-adjusted expectations. This development indicates a rising interest in Solana as an investment option.

Fidelity’s move to launch a spot Solana ETF is part of a broader trend where companies are positioning themselves for regulatory approval and potential modifications to current ETF structures. These modifications could include staking features, in-kind redemptions, and derivatives-based strategies, further integrating cryptocurrency into mainstream financial markets. The regulatory environment for cryptocurrency has shifted significantly, with the SEC becoming more lenient under the current administration. This shift was evident with the approval of spot Bitcoin and Ether ETFs in 2024, paving the way for future approvals of other altcoin ETFs.

The filing by Cboe BZX Exchange for Fidelity’s spot Solana ETF comes amidst a competitive landscape where other companies have also filed for altcoin ETFs, including Litecoin (LTC), XRP, Cardano (ADA), Polkadot (DOT), and even Dogecoin (DOGE). Additionally, Canary Capital has filed for an NFT-tracking ETF, expanding the ETF market as asset managers continue to find ways around SEC rules to bring investors to digital asset-backed funds.

The industry is closely watching the SEC’s next steps regarding these new uses of cryptocurrency. If authorized, Fidelity’s spot Solana ETF could lead the way for wider usage of altcoin ETFs, providing Americans with more investment options in the cryptocurrency space. The regulatory shift and the growing interest in altcoin ETFs signal a potential transformation in the financial landscape, with cryptocurrency becoming an increasingly integral part of mainstream investment strategies.