- Fidelity has filed for SEC approval of a spot Solana (SOL) ETF, joining major financial firms in the race to launch altcoin-based ETFs amid growing investor demand.
- With shifting regulatory attitudes and increasing competition, the approval of Fidelity’s ETF could pave the way for broader adoption of cryptocurrency investment products in mainstream markets.
The race to introduce cryptocurrency-based exchange-traded funds (ETFs) in the U.S. is intensifying, with Fidelity stepping into the spotlight. On March 25, the asset management giant took a significant step by filing a 19b-4 form with the U.S. Securities and Exchange Commission (SEC) via the Cboe BZX Exchange. This filing marks a push for the approval of Fidelity’s spot Solana (SOL) ETF, potentially setting the stage for broader altcoin investment opportunities.
Rising Demand for Solana ETFs
Fidelity’s interest in a Solana ETF reflects the growing demand for Solana-based investment products. The momentum behind altcoin ETFs, including Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), has been steadily increasing in the U.S. market. The potential launch of a spot SOL ETF could attract inflows ranging from $3 billion to $6 billion, according to analysts, making it a contender alongside Bitcoin (BTC) and Ethereum (ETH) ETFs.
One of the driving forces behind this demand is the introduction of Solana futures contracts on the Chicago Mercantile Exchange (CME) on March 17. While the first-day trading volume of $12.3 million was lower than Bitcoin’s $102.7 million and Ethereum’s $31 million, it was in line with expectations when adjusted for market capitalization.
A Competitive Landscape
Fidelity is not alone in the push for a Solana ETF. Other major financial institutions such as VanEck, Grayscale, 21Shares, Bitwise, and Franklin Templeton have also filed similar applications. In addition, the Volatility Shares Solana ETF (SOLZ) and the 2X leveraged Solana ETF (SOLT) were introduced on March 20, showcasing a growing appetite for Solana-based investment vehicles.
Beyond Solana, firms are vying for ETF approvals for other cryptocurrencies, including Litecoin (LTC), XRP, Cardano (ADA), and Polkadot (DOT). Canary Capital has even filed for an NFT-tracking ETF, which would offer investors exposure to digital collectibles like the Pudgy Penguins NFTs. These filings highlight how asset managers are innovating within the regulatory framework to expand the digital asset investment market.
Regulatory Shifts Underway
The SEC’s stance on cryptocurrency regulation has evolved significantly over the years. Under the previous administration, the regulator was known for its strict enforcement actions against crypto firms. However, the approval of spot Bitcoin and Ethereum ETFs in 2024 signaled a more accommodating approach, paving the way for potential altcoin ETF approvals.
Industry stakeholders are now keenly watching how the SEC will handle the latest wave of applications. If Fidelity’s spot Solana ETF gains approval, it could serve as a benchmark for future altcoin ETFs, further integrating digital assets into mainstream financial markets.
As competition intensifies and regulatory attitudes shift, the battle for the first approved spot Solana ETF is shaping up to be a defining moment in the evolution of cryptocurrency investing in the U.S.
