Fidelity Files for Solana ETF, Highlighting Growing Interest in Altcoins

This marks a significant step toward the launch of a new cryptocurrency exchange-traded fund (ETF) based on Solana, the sixth largest cryptocurrency by market capitalization.

Fidelity is making significant strides in the realm of cryptocurrency exchange-traded funds (ETFs) with its latest filing for a fund based on Solana, the sixth largest cryptocurrency by market capitalization, reports Bloomberg.

This move underscores the burgeoning interest in alternative cryptocurrencies, fueled by the recent success of Bitcoin ETFs and the evolving landscape for digital asset investments.

According to Eric Balchunas, Senior ETF Analyst at Bloomberg, there is a 70% chance that Solana ETFs will be approved this year, although the exact timing remains uncertain.

What Happened: Fidelity recently filed a Form 19b-4 with the U.S. Securities and Exchange Commission (SEC) for the potential listing of shares of its ETF, which will track the performance of the Solana token.

The new cryptocurrency fund will be housed in a Delaware Trust entity, which is a common structure for ETFs.

This filing marks a crucial step in the SEC’s approval process, which also requires S-1 registration statements detailing the fund’s structure and objectives.

This development closely follows Fidelity’s establishment of the Delaware Trust entity specifically for the Solana fund, which is designed to track the performance of the Solana token itself.

Sol is currently priced at $145, reflecting a minor increase of about 1.2% over the past 24 hours, according to CoinGecko.

See More: Top 100 Most Valuable Cryptocurrencies

Who Else Is Applying: Apart from Fidelity, several other financial firms are aiming to launch spot Solana ETFs.

Among the contenders are Grayscale, Bitwise, and VanEck, each with their own applications pending approval.

The strong interest in Solana ETFs follows the remarkable success of Bitcoin ETFs, which have collectively garnered over $35 billion in net inflows since their approval last January.

Highlighting this trend, crypto-backed investment products have experienced a substantial rebound, with a total of $644 million in net inflows last week, as reported by CoinShares.

A majority of this momentum is driven by investors' renewed interest in Bitcoin, and also a huge interest in Solana-related investment products.