Asset management firm Fidelity has submitted an S-1 registration for a Solana spot ETF that will offer staking options.
Fidelity's Submission for Solana ETF
Fidelity filed its S-1 statement to the U.S. Securities and Exchange Commission (SEC). The proposed fund will operate as a Delaware statutory trust.
The ETF aims to mirror SOL's performance based on the Fidelity Solana Reference Rate Index, which calculates price data using a volume-weighted median price after 15 seconds. The index aggregates prices from eligible spot markets and reflects the real-time value of SOL in U.S. dollars.
The fund will keep SOL in custody and earn extra yield by staking some of its holdings through vetted providers.
Competition in the Solana ETF Market
Fidelity is not the only firm eyeing a SOL ETF. On Friday, multiple companies, including VanEck, 21Shares, Bitwise, Grayscale, Canary Capital, and Franklin Templeton, issued SOL ETF S-1 amendments. VanEck was the first U.S. company to file for a spot Solana ETF in June 2024 and was also the last to submit its amended S-1 filing that day.
SEC's Recommendations for Issuers
The latest filing follows the SEC’s directive asking spot Solana ETF issuers to update their S-1 filings by June, indicating a more likely approval timeline. According to Bloomberg's ETF analyst Eric Balchunas, this gives a timeframe of two to four months for spot SOL ETFs to go live.
The SEC also requested issuers to clarify language surrounding in-kind redemptions and approaches to staking.
Fidelity's ETF submission for Solana could significantly influence the cryptocurrency investment landscape, potentially attracting interest from both traditional and new investors.
