Fidelity's Spot Solana (SOL) ETF Advances With SEC Filing

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).

Crypto asset management firm Fidelity is getting closer to launching its spot Solana (SOL) exchange-traded fund (ETF), with the approval of the exchange listing standard by the U.S. Securities and Exchange Commission (SEC).

The SEC filing on Friday, March 23, was made by Cboe BZX Exchange for the listing of the Fidelity’s spot Solana ETF. It comes after Fidelity registered a Solana trust in Delaware, another regulatory milestone in the journey to launch the ETF.

Fidelity is among a growing number of asset managers applying to launch a spot SOL ETF. Other firms with such filings include VanEck, Grayscale, 21Shares, Bitwise, and Franklin Templeton.

Analysts expect an estimated $3 billion to $6 billion in inflows if the ETF is launched, comparing its potential size to the Bitcoin (BTC) and Ethereum (ETH) ETFs.

Earlier this month, the Chicago Mercantile Exchange (CME) launched Solana futures contracts, kicking off the year in style for the derivatives exchange. The first day of trading on March 15 saw a volume of $12.3 million.

While the volume was lower than Bitcoin’s $102.7 million and Ethereum’s $31 million, it was in line with expectations adjusted for market cap.

Recently, Volatility Shares launched two Solana futures ETFs, sparking interest in Solana ETFs. These are the Volatility Shares Solana ETF (NYSE:SOLZ) and the 2X Leveraged Solana ETF (NYSE:SOLT).

Analysts believe these launches will serve as a benchmark for gauging the demand in the spot market for Solana ETFs once they are approved.

Cboe is applying to list the Franklin Templeton spot Solana ETF. It is also seeking to list several other 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 that will give shareholders exposure to the PENGU token and Pudgy Penguins NFTs.

This move marks a significant expansion of the ETF market as asset managers seek creative avenues to circumvent SEC rules and funnel investors into digital asset-backed funds.

The SEC’s approach to regulating cryptocurrency has undergone a notable shift during the administration of President Donald Trump.

Despite the agency launching over 100 enforcement actions against crypto firms, the regulator has become more lenient in recent times. This shift was evident in the 2024 approval of the Bitcoin and Ether ETFs, paving the way for future approval of other altcoin ETFs.

Issuers are not only positioning themselves for regulatory approval but are preparing to introduce modifications to current ETF structures. These changes may include staking features, in-kind redemptions, and derivatives-based strategies.

These adjustments will serve to integrate cryptocurrency more seamlessly into mainstream financial markets. As the political and regulatory landscape continues to evolve under President Donald Trump’s administration, industry insiders await the SEC’s verdict on these new uses.

If authorized, Fidelity’s spot Solana ETF could spearhead the broader adoption of altcoin ETFs by Americans.