Fidelity Investments is making waves in the cryptocurrency market by filing for an exchange-traded fund (ETF) designed to track the price of Solana (SOL). This significant move was disclosed in a recent filing with the Securities and Exchange Commission (SEC) on Tuesday.
Cboe Exchange Submission
The Cboe Exchange has submitted a 19b-4 filing to list the proposed Solana ETF from the $5 trillion investment powerhouse, Fidelity. This filing follows Fidelity’s establishment of a Fidelity Solana Fund in Delaware just last Thursday, marking a proactive approach to entering the burgeoning crypto asset space.
Awaiting the S-1 Filing
While Fidelity has taken steps towards launching the ETF, it has yet to file the required S-1 documentation. This filing is essential for companies looking to issue new securities and list them on a public stock exchange, indicating that Fidelity is still in the preliminary stages of this process.
Solana’s Position in the Crypto Market
Solana, with a market capitalization of approximately $74 billion, stands as the sixth-largest cryptocurrency globally. Its growing popularity has not gone unnoticed, as various asset management firms, including Grayscale, Franklin Templeton, and VanEck, have also submitted applications to the SEC to launch funds that hold the Solana token.
Recent Developments in the ETF Landscape
In a notable development for Solana, two ETFs focused on SOL futures, named SOLZ and SOLT, were recently introduced on the Nasdaq. This launch represents a significant milestone in the quest for approval of a spot exchange-traded product, potentially paving the way for broader acceptance of Solana in the investment community.
Fidelity’s Experience in Crypto ETFs
Fidelity is no stranger to the ETF landscape, having previously launched two spot crypto ETFs: the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH) last year. FBTC has proven to be particularly successful, attracting nearly $17 billion in assets, while FETH has garnered around $975 million.
Client Interest in Digital Assets
Fidelity has recognized the increasing interest among its clients in owning cryptocurrencies, with a significant number already investing in various digital assets. The firm has been actively developing its digital asset ecosystem since 2014, demonstrating its commitment to providing innovative solutions in the evolving financial landscape.
As Fidelity navigates this new venture into Solana ETFs, all eyes will be on the SEC’s response and the potential implications for both the firm and its clients in the ever-evolving cryptocurrency market.
