TL;DR
- Fidelity files for a Solana (SOL) ETF through the Cboe BZX Exchange, aiming to facilitate institutional investment in cryptocurrencies.
- With over $5.9 trillion in assets under management, Fidelity replaces Franklin Templeton as the largest institutional player bringing Solana to traditional markets.
- The filing puts pressure on BlackRock, which has not yet filed a similar request, while other competitors may advance their approval.
Fidelity, one of the world’s largest asset managers, has filed a request to create a Solana (SOL) exchange-traded fund (ETF) through the Cboe BZX Exchange.
This filing will be crucial for the advancement of the crypto market over traditional finance. With over $5.9 trillion in assets under management, Fidelity replaces Franklin Templeton as the largest institutional player in bringing Solana to traditional markets.
Solana Under the Eye of Institutional Investors
The goal of this ETF is to allow institutional investors to gain exposure to the Solana (SOL) token without having to directly engage with blockchain technology. This type of fund simplifies investment in digital assets, removing the complexities of handling them, such as managing private keys or storing them in digital wallets.
The approval process for the Solana ETF began on March 25 when Cboe submitted a 19b-4 form to the SEC. This is just the first step; Fidelity will need to submit an additional S-1 registration statement, which will provide details about the fund, including management fees and potential staking mechanisms.
Fidelity Puts Pressure on BlackRock
Fidelity has put pressure on BlackRock, the largest global asset manager. Despite ambiguous responses regarding a possible Solana ETF filing, BlackRock appears to be reconsidering its stance, especially after announcing the implementation of its blockchain-based money market fund, BUIDL, on the Solana network. Like Fidelity, BlackRock recognizes the huge interest in Solana from traditional investors.
If other asset managers, such as Franklin Templeton or Grayscale, gain approval for their ETFs before BlackRock, the latter could fall behind in terms of benefits from the institutional adoption of Solana. The speed with which the SEC approves these funds could risk BlackRock’s clients being excluded from the potential gains arising from growing demand for SOL in traditional markets.
