HomeNewsFidelity Enters Spot Solana ETF Race as Cboe Files 19b-4 with SEC

Fidelity Enters Spot Solana ETF Race as Cboe Files 19b-4 with SEC

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  • Fidelity filed for a spot Solana ETF through Cboe.
  • Major firms like VanEck and Grayscale are also seeking ETF approvals.

Fidelity Investments has entered the race of the growing list of asset managers seeking to launch a spot Solana (SOL) exchange-traded fund (ETF) in the United States.

The Chicago Board Options Exchange (Cboe) BZX Exchange on March 25 submitted a Form 19b-4 with the Securities and Exchange Commission (SEC), requesting approval to list and trade shares of the proposed Fidelity Solana Fund.

The filing is the beginning of the SEC’s official review process, during which the agency must decide whether to approve or reject the ETF application. Fidelity’s application follows the recent registration of the Fidelity Solana Trust in Delaware, a move seen as preparatory groundwork for the ETF proposal.

Solana has grown in popularity over the last several years due to its low-latency, low-cost transactions, and scalable design, and it is a viable alternative to Ethereum. A spot ETF would provide investors with direct price exposure to SOL without requiring them to custody the token directly.

Multiple Firms Eye Solana ETF Approval

Fidelity’s submission comes at a time when there is a rising institutional interest in Solana-based investment products. Asset managers including VanEck, Franklin Templeton, Bitwise, and Grayscale have either filed similar applications or registered Solana trusts in recent months. 

The wave of filings follows the SEC’s approval of spot Bitcoin ETFs in January, a move that has raised expectations for the acceptance of crypto-based ETFs.

Historically, the SEC has taken a cautious approach toward cryptocurrency ETFs, citing market manipulation, custody, and liquidity concerns. But the approval of a number of Bitcoin spot ETFs earlier this year indicates a potentially more welcoming regulatory climate for other digital asset products.

Meanwhile, financial institutions have launched derivative-based Solana ETFs. Volatility Shares recently launched SOLZ and SOLT— ETFs that track Solana exposure through financial instruments, with the latter offering 2x leverage.

If approved, Fidelity’s offering would be one of the first spot Solana ETFs available to U.S. investors, potentially clearing the way for wider adoption of Solana as a digital asset. The SEC’s decision on the filing will be closely watched across the digital asset industry, as it may set a precedent for future product approvals tied to alternative Layer 1 blockchains.

 

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Toheeb Kolade
Toheeb Kolade
Toheeb is an insightful blockchain reporter with deep knowledge of cryptocurrencies. With years of experience in financial journalism, Toheeb covers the latest developments in blockchain technology, cryptocurrency trends, decentralized finance (DeFi), and regulatory updates. Known for breaking news and in-depth analysis, Toheeb brings new angles on how blockchain is transforming industries and changing the global economy. From uncovering market movements to providing expert commentary on new technologies, Toheeb is dedicated to keeping readers informed about the developments in blockchain-related topics.
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