The efforts to launch the first US spot Solana exchange-traded fund (ETF) are accelerating, with Cboe BZX Exchange submitting a request to the Securities and Exchange Commission (SEC) to list a proposed Solana ETF from Fidelity. This submission, dated March 25, positions Fidelity among a number of asset managers eager to introduce Solana-based financial products to the market. The final requirement for trading to begin hinges on obtaining approval from the SEC.
This move by Cboe follows a prior application to list another Solana ETF backed by Franklin Templeton, which was submitted on March 12. Other prominent asset managers such as Grayscale, VanEck, 21Shares, Canary, and Bitwise have also sought similar opportunities within the market.
On a related note, the Chicago Mercantile Exchange (CME) launched Solana futures contracts on March 17, reflecting an increasing institutional interest in financial products tied to the Solana ecosystem.
Currently, US investors do not have access to spot Solana ETFs; however, the market has seen the introduction of derivative-based products. In March, Volatility Shares unveiled the first ETFs to offer exposure to Solana via financial derivatives, known as the Volatility Shares Solana ETF (SOLZ) and the double-leveraged Volatility Shares 2X Solana ETF (SOLT).
Regulatory skepticism regarding altcoin ETFs has characterized the SEC’s historical stance. Yet, the agency’s approval of spot Bitcoin ETFs earlier in the year suggests a possible shift in its regulatory perspective. Under Joe Biden’s administration, the SEC previously took a stringent approach, filing numerous lawsuits against crypto firms. Since the start of Donald Trump’s second term, an apparent easing in this approach has been noted.
The approval of multiple spot Bitcoin ETFs in 2024 indicates potential for similar cryptocurrency investment vehicles. Consequently, the decisions regarding Solana ETFs could represent a significant move in increasing investor access to digital asset funds.
In recent years, one particular investment firm has broadened its footprint in the cryptocurrency market, launching two spot crypto ETFs in 2023: the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH). With a substantial number of its clients already investing in cryptocurrencies, the introduction of a Solana ETF aligns with the firm’s overarching strategy. Should this ETF receive the necessary approval, it would afford investors direct exposure to Solana’s price movements without the need to hold the asset directly.
As institutional interest in Solana intensifies and regulatory perspectives evolve, the chances of spot Solana ETFs receiving approval in the near future appear increasingly favorable.