Cboe Seeks SEC Approval to List Fidelity’s Spot Solana ETF

The race to launch the first US spot Solana
exchange-traded fund (ETF) is gaining momentum. Cboe BZX Exchange has requested that the Securities and Exchange Commission (SEC) list Fidelity’s
proposed Solana ETF.

The filing, made on March 25, adds Fidelity to a
growing list of asset managers looking to bring Solana-based investment
products to the market. However, the SEC’s approval remains the final hurdle
before trading can commence.

Cboe’s move comes shortly after it filed to list
another spot, Solana ETF, sponsored by Franklin Templeton on March 12. Several
asset managers, including Grayscale, VanEck, 21Shares, Canary, and Bitwise,
have also submitted applications for similar products.

Meanwhile, the Chicago Mercantile Exchange (CME)
introduced Solana futures contracts on March 17, further indicating
institutional demand for SOL-related financial products.

Current Solana ETF Landscape

While US investors currently lack access to spot
Solana ETFs, derivative-based products have already entered the market. In
March, Volatility Shares launched the first ETFs providing exposure to Solana
through financial derivatives.

The Volatility Shares Solana ETF (SOLZ) and the
Volatility Shares 2X Solana ETF (SOLT) allow investors to gain exposure to
SOL’s price movements, with the latter offering 2x leverage.

The SEC has historically been hesitant to approve
altcoin ETFs, but the introduction of spot Bitcoin ETFs earlier this year
signaled a potential shift in regulatory approach.

The SEC’s stance on cryptocurrency ETFs has evolved
following a change in administration. Under former President Joe Biden, the
agency took a tough stance, launching over 100 lawsuits against crypto firms.
However, following the beginning of President Donald Trump’s second term in
January, regulators appear to be softening their approach.

In 2024, the SEC approved several spot Bitcoin ETFs,
paving the way for further cryptocurrency-based investment vehicles. The
decision on Solana ETFs could mark the next step in broadening access to
digital asset funds.

Fidelity’s Growing Crypto Ambitions

Fidelity has been expanding its presence in the
cryptocurrency sector for years. In 2023, the firm launched two spot crypto ETFs: the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum
Fund (FETH).

With many of its clients already holding crypto
assets, Fidelity’s push for a Solana ETF aligns with the firm’s long-term
strategy. If approved, the fund would provide investors with direct exposure to
Solana’s price movements without requiring them to hold the asset directly.

As institutional interest in Solana grows and
regulatory sentiment shifts, the likelihood of spot Solana ETFs gaining
approval in 2024 appears stronger than ever.

This article was written by Jared Kirui at www.financemagnates.com.
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