Fidelity Investments is making waves in the cryptocurrency market with its recent plans to create an exchange-traded fund (ETF) that will track the price of Solana (SOL). A filing with the Securities and Exchange Commission (SEC) made public on Tuesday highlights this initiative, marking a significant step for both the firm and the burgeoning world of digital assets.
The Cboe Exchange has submitted a 19b-4 filing to list Fidelity’s proposed Solana ETF, following the firm’s registration of a Fidelity Solana Fund in Delaware the previous Thursday. This development points to Fidelity’s increasing commitment to expanding its offerings in cryptocurrency investments.
Notably, while Fidelity has made this announcement, it has yet to submit an S-1 filing. Such documentation is crucial for any company aiming to issue a new security that will be listed on a public stock exchange. The absence of this filing does not diminish the excitement surrounding Fidelity’s entry into the Solana space.
Currently valued at $74 billion, Solana ranks as the sixth-largest cryptocurrency by market capitalization globally. The growing interest in this asset class is evident, with numerous asset managers, including Grayscale, Franklin Templeton, and VanEck, having filed applications with the SEC to launch funds that will hold the token.
Interestingly, just last week, two ETFs tracking Solana futures—SOLZ and SOLT—were launched on the Nasdaq, which marks a pivotal advancement toward obtaining approval for a spot exchange-traded product. This move indicates that institutional interest in cryptocurrency is gaining traction as financial products evolve.
Fidelity is no stranger to the cryptocurrency landscape; it has previously launched two spot crypto ETFs: the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH) last year. The performance of these funds speaks volumes: FBTC has attracted nearly $17 billion in assets, while FETH manages around $975 million. This success illustrates Fidelity’s capacity to effectively navigate the crypto market.
Moreover, the firm’s commitment to digital assets has been longstanding. Many of Fidelity’s clients are keen on owning cryptocurrencies, with a significant portion already invested. With a digital asset ecosystem in development since 2014, Fidelity is well-positioned to cater to the growing demand for innovative financial products linked to cryptocurrencies.
As Fidelity continues its journey into the world of Solana, market participants and investors alike are eager to see how this will shape the future of cryptocurrency investments, adding another layer of opportunity for those looking to diversify their portfolios.
