Fidelity launched FSOL, an ETF that offers direct exposure to Solana with staking capability, listed on NYSE Arca and approved by the SEC via an 8‑A in November 2025. FSOL combines institutional scale —Fidelity manages $6.4 trillion—, an aggressive fee structure and institutional custody to facilitate regulated access to SOL. The product targets investors seeking regulated Solana access with staking yield while minimizing operational complexity.
FSOL tracks the Fidelity SOL Reference Rate and holds 100% of its assets in SOL, with the intent to stake almost all of the underlying tokens to generate rewards. Staking is the process by which tokens are locked to participate in the security and validation of a proof‑of‑stake network, in exchange for periodic rewards that accrue to participants.
An ETF (exchange‑traded fund) allows buying and selling a basket of assets on a regulated market with intraday pricing, enabling liquid access to the underlying exposure. Institutional custody means that digital assets are held by regulated entities that manage keys and custody on behalf of the fund, reducing operational risks for investors. The SEC explicitly authorized staking within ETFs after a policy change in August 2025, enabling products like FSOL to offer staking yield without operational complexity for retail or institutional investors.
The custodians designated for FSOL are Gemini Trust Company, LLC and Coinbase Custody Trust, LLC, reflecting a multi‑custodian approach aligned with institutional standards. Fidelity set a management fee of 0.25% and will waive it for the first six months of trading; it will also absorb staking fees on rewards generated up to the first $1,000M in AUM, reinforcing its pricing strategy to accelerate early asset growth.
Competition, regulation and market impact
The launch comes in a market with several participants: Bitwise’s Solana Staking ETF (BSOL) had accumulated about $450M in assets and other products like VSOL (VanEck), SOLC (Canary Marinade) and Grayscale’s conversion to GSOL compete for share. Fidelity’s entry stands out because of its scale and pricing policy aimed at quickly capturing market in an emerging space.
From a regulatory standpoint, approval via an 8‑A and the clarification on staking reduce compliance frictions, although operations require robust KYC/AML procedures, validator selection and custody controls. These safeguards remain central to operational integrity as staking is integrated into ETF structures.
Regarding the market, the initial reaction showed volatility: after the launches, SOL’s price fell to approximately $136.80, with a loss of more than 20% in the following week, underscoring that institutionalization alone does not guarantee immediate appreciation.
FSOL represents the entry of a large-scale manager into Solana products with integrated staking and promotional terms to attract AUM.
