- The SEC has acknowledged Fidelity’s application for a spot Solana ETF, starting the official review process.
- Fidelity joins several major asset managers competing to launch a Solana-based ETF.
Fidelity’s push to launch a spot Solana ETF has moved forward after the U.S. Securities and Exchange Commission (SEC) acknowledged its application. The move announced on Thursday means that the investment firm has initiated the public review process, which raises the possibility of a Solana ETF backed by Fidelity.
The filing submitted through Cboe BZX Exchange seeks to propose a new rule that will permit the Fidelity Solana ETF to list and trade. This is the second filing connected to a Solana-based product that the exchange has made in recent weeks. It previously sought approval on behalf of Franklin Templeton, which also wants to offer the same.
After the SEC acknowledges the filing, it will be made public in the Federal Register. This initiates a 21-day period for anyone to provide comments on the publication. Next, the SEC has 45 to 90 days to approve, deny, or defer a decision on the ETF.
Asset Managers Compete for Solana ETF Approval
This comes as more asset managers aim to list Solana-based ETFs in a bid to tap into solid and growing demand for the asset. With this latest filing, there are about seven firms in the running to offer a Solana ETF. This kind of competition is becoming apparent as more institutions seek to enter altcoin markets after the approval of Bitcoin and Ethereum spot ETFs earlier this year.
Fidelity company’s proposed product will likely be under Fidelity Solana Trust, which is registered with CSC Delaware Trust Company. It also has structures similar to those used in its other crypto-based products. The confirmation of the SEC has raised optimism on crypto Twitter as Polymarket places the chances of a Solana ETF being approved by 2025 at 89%, up from 77 % at the beginning of the year.
Franklin Templeton is still one of the strongest candidates in the race. However, Fidelity’s track record with digital asset funds could be an advantage. It’s Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund (FBTC), has already captured almost $17 billion in assets. However, another of its funds, the Ethereum fund (FETH), holds more than $975m.
SEC Policy Shift Could Boost Crypto ETF Landscape
The changing perception of the SEC’s approach towards cryptocurrencies could also add to the likelihood of its approval. On the same day that the agency admitted Fidelity’s application, the Senate Banking Committee approved Paul Atkins as the nominee for the SEC Chair. Pro-market legislation Atkins also joins the call to set up better-defined digital asset rules.
Some of the measures that have been implemented in the recent past include a reduction in enforcement activities and the creation of a crypto products task force. Such changes might make decisions more favourable for ETF applications, such as Fidelity’s, with faster results.
A more open regulatory environment and high demand in retail and institutional investor status make the Solana ETF a possible step towards the popularity of the altcoin.
Despite the regulatory boost, Solana’s price has yet to respond positively. SOL has seen a decline of 0.5% in the last one day. The weekly and monthly charts depict a downward trend of 7% and 6.4%, respectively. Presently, Solana goes for $118.95, putting it among the top seven cryptocurrencies in the world.
