- The SEC acknowledged Fidelity’s Solana ETF filing, moving the proposal closer to approval.
- Fidelity has strong experience with crypto ETFs, managing billions in assets.
- Solana’s market structure could allow the ETF to operate without surveillance-sharing agreements.
The U.S. Securities and Exchange Commission (SEC) has acknowledged Fidelity’s application for a Solana (SOL) spot Exchange-Traded Fund (ETF). This is an indication that Fidelity’s proposal is on the right track as planned. The firm seeks to launch Solana ETF on the Cboe BZX Exchange.
Fidelity’s Updated ETF Proposal
The firm first submitted its application in March 2025 and later made changes to the application on the first of April to give further clarification. The amendment outlines that Fidelity plans to list the Solana ETF under the rules of the Cboe BZX Exchange with regard to the commodity-based trust shares. The filing also includes a form S-1 registration in a bid to meet the legal requirements of the SEC.
The firm has recorded a fair share of successes in cryptocurrency ETFs. The firm launched the Fidelity Wise Origin Bitcoin Fund (FBTC), which has nearly $17 billion in the market today. It also introduced the Fidelity Ethereum Fund [FETH], which has assets of almost $975 million. This indicates that Fidelity is well poised for the proposed Solana ETF because of its experience in managing crypto investments.
Solana’s Market Structure and ETF Viability
The Solana ETF shall physically hold SOL tokens and also tap into staking services from reliable service providers. The Cboe BZX Exchange will provide trading for the ETF and ensure that the market structure of Solana will keep the token safe from manipulation.
For instance, SOL trades $2 billion worth daily while its full diluted market capitalization reached $90 billion in the last 180 days. The exchange argues that such market characteristics reduce the necessity of the surveillance-sharing arrangement.
The SEC will be seeking public comments regarding Fidelity’s Solana ETF application as it goes through the approval process. The move comes after other firms have filed, such as Grayscale, 21Shares, and Canary Capital, back in February. These filings also effectively signify that there is a rise in demand by large institutions in the financial market for cryptocurrency ETFs.
A More Crypto-Friendly Regulatory Outlook?
Fidelity’s latest move comes at a time when there is a shift in the law overseeing and regulating cryptocurrencies. This acknowledgment by the SEC also marks a new trend regarding the change in the approach of the SEC in the regulation of digital assets. This change also suits the current political climate in the U.S. The Committee on Banking of the Senate recently approved Paul Atkins to head the SEC. Atkins has declared that the regulation of digital assets is a key priority area that may lead to further crypto-friendly policies.
Based on the increasing interest in cryptocurrency ETFs, analysts believe that more such products will be approved. Other firms such as Grayscale, VanEck and Bitwise are also seeking such approval to have their ETFs in the market. If the SEC approves the Fidelity Solana ETF, then other firms may follow the same path and launch other regulated crypto investment products.
Fidelity’s development has failed to ignite Solana’s price, which is down 10% following the broad market downturn. At the time of this writing, SOL was trading at $116 with a market cap and trading volume of $60 billion and $15 billion, respectively, according to Coinmarketcap data.
