The race for a spot Solana (SOL) exchange-traded fund is becoming a hotly contested prize, and a major player has officially joined the fray. Fidelity, one of the world’s largest asset managers, has taken steps toward launching an ETF based on the sixth-largest cryptocurrency. Cboe Files SOL ETF Application On Behalf Of Fidelity In a 19b-4 filing on Tuesday, the Chicago Board Options BZX Exchange (Cboe) sought permission for the “Fidelity Solana Fund” proposed by the $5 trillion Wall Street giant. The 19b-4 form is a huge step in the SEC’s approval process, although Fidelity must still submit an S-1 registration statement describing the Solana-based investment vehicle. This filing comes a few days after Fidelity registered a new Delaware statutory trust for its Fidelity Solana Fund, which would be based on the performance of the sixth biggest crypto by market capitalization. Grayscale , Bitwise , Canary Capital, 21Shares, Franklin Templeton, and VanEck have also filed for spot SOL products. Earlier this year, Bloomberg Senior ETF Analyst Eric Balchunas pegged the odds at 70% that Solana ETFs would be approved this year, although he did not predict the exact timing. Altcoin ETF Craze Since pro-crypto President Donald Trump started his second term in January, the Securities and Exchange Commission has signaled a friendlier approach to the fast-growing crypto industry, such as dismissing enforcement cases against crypto players and establishing a crypto task force to formulate rules for the industry. The crypto-friendly policies have fueled a surge in ETF filings beyond Bitcoin and Ether. The torrent of filings rides on the momentum of both Bitcoin and Ethereum spot products securing the SEC’s regulatory blessing in early 2024. But, unlike the world’s two largest cryptos, Solana faces unique regulatory challenges. At the core is the question of whether Solana constitutes a commodity or security , a distinction that was critical in previous industry-related ETF approvals. Notably, Solana was one of the digital assets US President Donald Trump named for inclusion in the US crypto reserve before pulling back to include only tokens confiscated through enforcement actions. On March 17, the Chicago Mercantile Exchange (CME), the US’s largest derivatives exchange, debuted SOL futures contracts. Analysts say this was further indication that spot SOL ETFs would soon be greenlighted in the US. Several firms have been vying for approval to launch a slew of altcoin funds in the US. The proposed ETFs for altcoins range from XRP and Litecoin to Dogecoin and Official Trump .
