Fidelity's planned initiative to launch a Solana-based exchange-traded fund (ETF) has encountered new regulatory delays due to actions from the U.S. Securities and Exchange Commission (SEC).
Delay in Fidelity's ETF Process
The SEC has announced a renewed delay regarding Fidelity's proposal for a Solana ETF, initiating a public comment period. This process includes a 21-day window for comments and 35 days for rebuttals following publication in the Federal Register.
Regulatory Hurdles for Altcoin ETFs
This delay highlights ongoing regulatory challenges that altcoin ETFs face in the U.S., as the SEC remains cautious about approving spot crypto ETFs beyond Bitcoin and Ethereum. Bloomberg ETF analyst James Seyffart described the postponement as expected, pointing to ongoing regulatory uncertainty.
Development of Alternative Products
Some asset managers are developing alternative products, such as the REX-Osprey Sol + Staking ETF, which offers indirect exposure to Solana’s ecosystem and staking rewards without direct cryptocurrency ownership. This movement aligns with increasing investor interest in Solana-related investments amidst SEC oversight.
The delay of Fidelity's Solana ETF application, along with ongoing regulatory challenges, underscores the issues faced by altcoins in the U.S. market. Meanwhile, the development of alternative financial products may prove to be a viable strategy for asset management companies.
