Cboe BZX Exchange Files to List Fidelity Solana (SOL) Exchange-Traded Fund (ETF)

The request now sits with the US Securities and Exchange Commission, which must approve the filing before trading of the Fidelity Solana Fund can commence on the exchange.

BZX Exchange, a US securities exchange, has requested permission to list a proposed Fidelity exchange-traded fund (ETF) holding Solana (SOL), according to March 25 filings.

This is the latest in a spate of filings with the US Securities and Exchange Commission by exchanges and fund sponsors seeking to launch ETFs holding SOL and other cryptocurrencies.

The request now sits with the federal agency, which must approve the filing before trading of the Fidelity Solana Fund can commence on the exchange.

This would make the ETF the first to offer US investors exposure to Solana's native token.

On March 12, BZX filed to list another spot SOL ETF sponsored by asset manager Franklin Templeton.

Source: James Seyfart/Bloomberg Intelligence

Related: Solana CME futures tip impending US ETF approvals — Exec

This filing also follows the launch of an ETF using financial derivatives known as futures to track the performance of spot SOL.

Launched in March, Volatility Shares Solana ETF (SOLZ) and the Volatility Shares 2X Solana ETF (SOLT) are the first ETFs providing US investors with exposure to Solana's native token.

The SOLT ETF tracks SOL's performance with 2x leverage.

According to analysts at Bloomberg Intelligence, the odds of US regulators approving a spot SOL ETF this year are 70%.

Other asset managers seeking to list spot SOL ETFs include Grayscale, VanEck, 21Shares, Canary and Bitwise.

Earlier this week, the Chicago Mercantile Exchange (CME), the US's largest derivatives exchange, launched SOL futures contracts.

According to experts, this is further indication that spot SOL ETFs will soon be approved in the US.

The move comes as no surprise given that the SEC is currently considering several applications for spot bitcoin and ether ETFs from asset managers.

The applications for bitcoin and ether ETFs are still pending, and the CME's launch of SOL futures suggests that the approval process for altcoin ETFs may be progressing faster than expected.

The applications for altcoin ETFs were surprising, considering that the SEC rejected several proposals for bitcoin ETFs from ProShares and Direxion in 2023.

However, in January, the SEC cleared the way for several asset managers to launch bitcoin and ether ETFs.

The approval of these products marks a significant shift in the US, as it will provide local investors with a convenient and highly liquid way to invest in cryptocurrencies through traditional financial channels.

The move is part of a broader effort by the SEC to modernize the investment landscape and expand the types of products available to US investors.

The applications for altcoin ETFs are still pending, and the CME's launch of SOL futures suggests that the approval process for altcoin ETFs may be progressing faster than expected.

The applications for altcoin ETFs were surprising, considering that the SEC rejected several proposals for bitcoin ETFs from ProShares and Direxion in 2024.

However, in March, the SEC greenlighted spot bitcoin and ether ETFs but stymied proposed ETFs tied to other cryptocurrencies.

According to reports, the rejection of the altcoin ETFs was due to concerns about price manipulation and the ability of market participants to engage in "economic bad faith."

Despite this setback, several asset managers are continuing to request the SEC's approval to launch altcoin ETFs in the US.

The proposed ETFs for altcoins range from Litecoin (LTC) and XRP (XRP) to Dogecoin (DOGE) and Official Trump (TRUMP).

Issuers are also asking for the SEC to approve changes to existing ETFs, including allowances for staking, options and in-kind redemptions.

The SEC appears to be open to considering these types of requests.

In February, the agency granted approval for iTrust Capital to launch an actively managed bitcoin ETF with the ability to stake cryptocurrencies.

The move is a departure from the traditional structure of ETFs, which are typically index-tracking funds that do not engage in active trading decisions.

The approval of an actively managed bitcoin ETF could pave the way for a new generation of crypto ETFs that offer investors greater flexibility and control over their investments.

Overall, the SEC's actions suggest a willingness to adapt to the evolving landscape of the cryptocurrency industry and expand the types of products available to US investors.

As the legal and regulatory framework for cryptocurrencies continues to develop, we can expect to see even more innovative products and services emerging in the years to come.