The U.S. Securities and Exchange Commission (SEC) has officially published the Cboe BZX Exchange’s 19b-4 filing to list the Fidelity Solana Fund in the Federal Register. This significant step could make the ETF the first spot Solana exchange-traded fund (ETF) in the U.S.
Stakeholders can provide feedback on the proposal during the formal 21-day public comment period that the publication starts. The regulator has 240 days to decide whether to accept, reject, or postpone the application.
Fidelity Furthers Strategic Crypto Push
Fidelity manages successful Bitcoin and Ethereum ETFs, with assets totaling $17 billion and $975 million, respectively. The institution manages nearly $5 trillion in total assets and is leveraging its institutional credibility to push boundaries in digital asset investing.
The proposed Solana ETF would be listed on the Cboe BZX Exchange under Rule 14.11(e)(4), governing commodity-based trust shares. The fund’s sponsor will be FD Funds Management LLC, a subsidiary of Fidelity, while approved third parties will provide custody and staking services.
Investors will have the opportunity to generate additional yields through staking SOL tokens, which allow investors to generate additional yield.
After collecting public comments over 21 days, the SEC will evaluate whether the proposal meets its stringent investor protection and market integrity criteria. A final decision could come within months or extend into late 2025.
Asset Managers Accelerate Crypto Race
Other asset managers, such as Grayscale, Franklin Templeton, VanEck, and Canary Capital, have also submitted comparable applications to the SEC, alongside Fidelity’s bid for a spot Solana ETF. These changes show an increasing need for regulated investment instruments that provide cryptocurrency exposure.
Despite spot Bitcoin and Ethereum ETFs being permitted in 2024 following years of opposition, the SEC’s cautious approach for altcoins like Solana persists. Recent events suggest a more transparent regulatory approach under the new SEC leadership.
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