Cboe BZX Exchange has made an application to the US. Fidelity Investments has proposed the creation of a Solana exchange-traded fund (ETF) by filing with the Securities and Exchange Commission (SEC). A filing is when a company or organization submits an official document to the SEC for review and approval.
Many big banks want to set up their cryptocurrency-based ETFs. The move follows this trend. Just weeks ago, Cboe filed for Franklin Templeton’s Solana ETF, which shows the demand for investment vehicles in the cryptocurrency sector.
If it is approved, the Fidelity Solana ETF will help investors get direct access to the price movements of Solana. Like the latest Bitcoin and Ethereum ETFs, this product could attract institutional and retail investors wanting a compliant method to obtain crypto exposure.
Other big asset firms have filed for Solana ETFs, too. This includes Grayscale, VanEck, Bitwise and 21Shares. Bloomberg experts believe that there is a 70% chance that a spot Solana ETF will be approved by the SEC this year, as digital assets are becoming more popular.
The CME launched Solana contracts, indicating it may precede ETF approval. Futures-based ETFs have already been launched for Solana, including the Volatility Shares Solana ETF (SOLZ) as well as the 2X Solana ETF (SOLT), which offer leveraged exposure to the token.
Their growing interest in the financial industry fuels the demand for Solana ETFs. Many issuers are looking to the SEC to approve ETFs linked to other crypto assets and tokens, including Litecoin, XRP, Dogecoin and politically tagged tokens. Currently, the SEC is looking into proposals to improve the current ETFs by adding staking and options trading.
With a shift in political powers, we saw a change in the attitude of regulators toward crypto assets. So, optimism remained for approval of a new spot ETF. Fidelity’s most recent action shows how digital coins are becoming part of the normal banking process. This takes Solana closer to the main street.
