Wall Street’s Solana Bet Advances as Fidelity Updates ETF Filing
Fidelity Investments has filed a pre-effective modification for its Solana ETF with the Securities and Exchange Commission, transferring the registration towards computerized effectiveness.
The submitting reveals the fund will stake all its SOL holdings to generate returns exceeding the Fidelity Solana Reference Rate whereas charging a 0.25% annual charge, absolutely waived for the primary six months after launch.
This replace pushes Fidelity right into a quickly increasing Solana ETF market, which has already seen three merchandise debut on U.S. exchanges, capturing mixed first-day inflows exceeding $81 million.
Fidelity Structures Aggressive Staking Strategy
The Fidelity Solana Fund will stake as much as 100% of its SOL tokens by custodians Anchorage Digital, BitGo, and Coinbase Custody, with node operators together with Coinbase Crypto Services and Figment.
Staking rewards will probably be topic to a 15% charge break up among the many sponsor, custodians, and operators, with the Trust anticipated to unstake SOL inside two days when wanted for redemptions.
The fund will commerce beneath ticker FSOL on an undisclosed alternate, providing creation and redemption baskets of 25,000 shares settled in both SOL or money.
To help this dual-settlement method, Fidelity has secured buying and selling agreements with counterparties, together with Cumberland DRW, Jane Street Capital associates, and Virtu Americas, to facilitate money creations.
Despite the formidable construction, the submitting acknowledges substantial regulatory danger, noting the SEC has beforehand labeled SOL as a safety in enforcement actions. However, some instances have been dismissed or settled.
The registration warns {that a} definitive safety classification may set off fast materials impression on SOL’s buying and selling worth and doubtlessly pressure the fund’s liquidation.
Bitwise Dominates Early Market
While Fidelity prepares to enter, early movers have already claimed important market share.
Bitwise’s Solana ETF captured $69.5 million on its October 28 debut, practically six instances the $12 million raised by Rex-Osprey’s competing product.
The Bitwise Solana Fund stakes 100% of holdings in-house to ship the community’s full yield whereas charging a 0.20% administration charge, waived for 3 months.
Just in the future later, Grayscale launched its Solana Trust ETF on NYSE Arca, changing a 2021-vintage personal belief holding 525,387 SOL tokens.
The fund carries a 0.35% expense ratio and stakes 74.89% of belongings, passing 77% of staking rewards to buyers on a web foundation.
@Grayscale launches Solana ETF on NYSE Arca, changing into the third U.S. product as institutional adoption of proof-of-stake blockchains accelerates.#Solana #ETFhttps://t.co/57ppRE2y1e
— Cryptonews.com (@cryptonews) October 29, 2025
Meanwhile, Rex-Osprey’s SSK employs a hybrid construction holding 54% in direct Solana, 43.5% in a Swiss-listed CoinShares ETP, with the rest in JitoSOL and money.
The fund distributes month-to-month staking rewards, that are handled as a return of capital for tax functions, whereas charging a 0.75% expense ratio.
Institutional Appetite Tests Layer 1 Power Balance
Speaking with Cryptonews, Maria Carola, CEO of StealthEX, views the Solana ETF wave as a defining second in blockchain competitors.
“The launch of a spot ETF on Solana is a sign that has damaged out within the protracted battle for dominance within the Layer 1 blockchain house,” she mentioned.
“For the primary time, institutional buyers are being invited to think about Solana as a standalone macro asset.“
Carola notes projections of $3 billion in ETF inflows over 12-18 months rely on Solana sustaining its 2024 momentum in DeFi growth and community stability.
“Solana’s story is one in every of velocity, scalability, and engineering precision, however for a lot of market individuals, it stays a logo of short-term liquidity cycles and the fleeting hype of meme tokens,” she mentioned. “An ETF alone received’t change this notion in a single day.“
She acknowledges Ethereum’s commanding place, with over $60 billion locked in DeFi and a mature staking ecosystem that continues to draw institutional capital looking for predictability.
“In the long run, it’s Ethereum’s fundamentals, such as stability, institutional repute, and integration into the worldwide monetary system, that preserve its management,” Carola mentioned.
However, she proposes a coexistence mannequin during which “Ethereum serves as the underlying belief and settlement layer within the on-chain financial system, whereas Solana turns into its high-performance execution engine.“
Despite optimistic sentiment round ETF launches, SOL’s near-term worth motion stays unclear.
Polymarket offers Solana only a 25% probability (down 2% from yesterday) of reaching a brand new all-time high earlier than 2026, with SOL buying and selling at $196, up practically 1% over 24 hours.
Beyond U.S. markets, the Solana ETF momentum follows Hong Kong’s October approval of China Asset Management’s spot fund, which started buying and selling on October 27 with a $100 minimal funding.
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