Fidelity Advances Solana (SOL) ETF Amid Growing Institutional Interest
Rebeca Moen Oct 31, 2025 07:00
Fidelity updates its Solana ETF filing with a 0.25% fee as the market sees significant inflows and new competition, indicating growing interest in Solana's blockchain potential.
Fidelity Investments has taken a significant step forward in its cryptocurrency offerings by updating its filing for a Solana (SOL) exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission. This move, reported by CryptoNews, positions Fidelity to tap into the burgeoning interest in Solana's blockchain capabilities.
Fidelity Structures Aggressive Staking Strategy
The updated filing reveals that the Fidelity Solana Fund will stake up to 100% of its SOL tokens, utilizing custodians such as Anchorage Digital, BitGo, and Coinbase Custody. Node operators will include Coinbase Crypto Services and Figment. The fund plans to charge a 15% fee on staking rewards, which will be split among the sponsor, custodians, and operators. The ETF will trade under the ticker FSOL, offering creation and redemption baskets settled in either SOL or cash.
This filing update removes a previous “delaying amendment,” potentially allowing the registration to become automatically effective. However, Fidelity acknowledges the regulatory risks, noting that the SEC has previously classified SOL as a security in some enforcement actions. A definitive security classification could significantly impact SOL's trading value and possibly necessitate the fund's liquidation.
Bitwise Dominates Early Market
While Fidelity prepares its entry, early movers like Bitwise have already captured a substantial market share. Bitwise's Solana ETF recorded $69.5 million in first-day inflows, surpassing Rex-Osprey’s competing product. The Bitwise Solana Fund stakes 100% of its holdings to deliver maximum yield, with a management fee of 0.20%, waived for the initial three months.
Grayscale also joined the fray by launching its Solana Trust ETF on NYSE Arca, converting a private trust holding from 2021. With a 0.35% expense ratio, Grayscale stakes 74.89% of its assets, distributing 77% of the staking rewards to investors net of fees.
Institutional Appetite Tests Layer 1 Power Balance
The introduction of Solana ETFs marks a significant moment in the competition among Layer 1 blockchains. Maria Carola, CEO of StealthEX, suggests that the launch of a spot ETF on Solana signals its growing status as a macro asset for institutional investors. She highlights projections of $3 billion in ETF inflows over the next 12-18 months, contingent upon Solana's continued momentum in DeFi expansion and network stability.
Despite the positive sentiment, Solana's near-term price action remains uncertain. Polymarket currently estimates a 25% chance of Solana reaching a new all-time high before 2026, with SOL trading at $196, reflecting a modest 1% increase over 24 hours.
Beyond the U.S., Solana ETF momentum is also evident in Hong Kong, where China Asset Management's spot fund began trading with a $100 minimum investment following recent approval.
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