🚀 Fidelity’s Solana ETF Saga: Will the SEC Say Yes?

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  • Fidelity, in a move that surprises absolutely no one, joins the grand parade of companies knocking on the SEC’s door for a Solana ETF.
  • Altcoin ETFs are the new black, with SOL, DOGE, and ADA leading the glamorous charge.

Cboe’s BZX Exchange, not one to be left out of a good regulatory tussle, filed a19b-4 with the SEC. Their aim? To list Fidelity’s very own spot Solana (SOL) ETF. This bureaucratic ballet began on March25, following Fidelity’s earlier registration of a Solana trust in Delaware, because who doesn’t love a good regulatory two-step?

Fidelity finds itself in illustrious company, with VanEck, Grayscale,21Shares, Bitwise, and Franklin Templeton all scrambling to launch their own SOL ETFs. Analysts, ever the optimists, foresee a potential $3 billion to $6 billion inflow, hoping it will rival the success of Bitcoin and Ethereum ETFs. Because, why not dream big?

The clamor for Solana-based investment products is reaching fever pitch, especially after Solana futures contracts made their debut on the Chicago Mercantile Exchange (CME) on March17. First-day trading hit $12.3 million, modest compared to Bitcoin’s $102.7 million and Ethereum’s $31 million, but hey, it’s all relative, right?

Volatility Shares, not to be outdone, introduced their own Solana futures ETFs on March20, because one can never have too many ETFs. These include the imaginatively named Volatility Shares Solana ETF (SOLZ) and the2X leveraged Solana ETF (SOLT). Analysts nod sagely, viewing these launches as a harbinger of future spot market demand.

The race is heating up among ETF issuers, with Cboe’s latest application hot on the heels of its March12 filing for Franklin Templeton’s spot Solana ETF. And let’s not forget the altcoin ETFs for Litecoin (LTC), XRP, Cardano (ADA), Polkadot (DOT), and even the beloved Dogecoin (DOGE). Because in the world of ETFs, variety is the spice of life.

Canary Capital, not content with mere cryptocurrencies, filed for an NFT-tracking ETF, giving shareholders a stake in the PENGU token and Pudgy Penguins NFTs. It’s an expansion of the ETF market that would make even a penguin proud.

The SEC’s approach to cryptocurrency regulation has been as unpredictable as the British weather, especially since the days of President Donald Trump. While the SEC under President Joe Biden had a knack for launching enforcement actions against crypto firms, the winds of change have since blown through. The2024 approval of spot Bitcoin and Ether ETFs was a sign that the regulator might be softening, opening Pandora’s box for other altcoin ETFs.

ETF issuers are not just crossing their fingers for regulatory approval; they’re also eyeing modifications to current ETF structures. Think staking features, in-kind redemptions, and derivatives-based strategies. All this to ensure cryptocurrency becomes as mainstream as avocado toast.

As the political and regulatory landscape shifts under President Donald Trump’s watch, the industry holds its collective breath. Will the SEC give Fidelity’s spot Solana ETF the green light? Only time will tell, but one thing’s for sure: it could pave the way for Americans to embrace altcoin ETFs like never before. 🚀

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2025-03-26 23:53