Fidelity is making its move into altcoin ETFs, filing a proposal to list a spot Solana exchange-traded fund (ETF) on the Cboe BZX Exchange. The official request, submitted March 25, aims to bring SOL exposure to U.S. investors through a regulated investment vehicle.

Why This Matters for Investors

The proposed Fidelity Solana Fund would allow U.S. investors to gain direct price exposure to Solana (SOL) — the fifth-largest cryptocurrency by market cap — without managing crypto wallets or navigating digital exchanges. If approved, it would be the first U.S.-based spot ETF for Solana.

The filing emphasizes that the fund’s structure is designed to minimize manipulation risks, offer price transparency, and provide a safer alternative to self-custody. Fidelity argues that the product would also reduce fee volatility and improve access, especially as current U.S. investors rely on unregulated or over-the-counter (OTC) channels to buy SOL.

Key Details of the Proposed ETF

• Structure: The fund will hold actual Solana tokens (spot, not futures).
• Custody: Assets will be held in cold storage with a third-party custodian.
• Staking: The fund may stake a portion of its (SOL) holdings to generate additional rewards.
• Valuation: The ETF’s value will track a proprietary "Fidelity Solana Reference Rate" updated every 15 seconds.
• NAV & Transparency: Net Asset Value (NAV) will be published daily; holdings disclosed online.

The filing also highlights the liquidity and size of the (SOL) market, citing $2 billion in daily trading volume and a 180-day average market cap of over $90 billion, as evidence of robust investor interest.

Regulatory Angle and Market Impact

Rather than relying on futures market surveillance (as with prior ETF approvals), Fidelity is leaning on precedent set by recent spot Bitcoin and Ethereum ETF approvals. The filing argues that Solana’s market is sufficiently decentralized, globally traded, and hard to manipulate, making it compatible with SEC standards for investor protection.

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The move comes just hours after VanEck submitted a similar Solana ETF proposal, signaling growing institutional competition to lead in the altcoin ETF space.

If approved, Fidelity’s spot Solana ETF would be a milestone for crypto investing in the U.S., offering traditional investors simplified access to one of the fastest-growing digital assets in a regulated wrapper. With major asset managers like "Fidelity" and "VanEck" now in play, 2025 could mark a turning point in altcoin adoption on Wall Street.