Fidelity’s Solana ETF: A Dash of Drama in the Digital Realm

Oh, the drama! Fidelity Investments is throwing its hat into the ring, seeking the SEC’s blessing to launch an ETF that will hold Solana (SOL) directly. 🎉

Fidelity’s Grand Entrance: A Solana ETF to Rival the Best

On the grand stage of June 13, 2025, Fidelity submitted its S-1 registration statement to the U.S. Securities and Exchange Commission (SEC). The proposed “Fidelity Solana Fund” will operate as a Delaware statutory trust, aiming to mirror the performance of SOL, based on the Fidelity Solana Reference Rate index, adjusted for fund-related expenses. How thrilling! 🎬

This ETF plans to keep SOL in custody and, in a twist of modern finance, earn extra yield by staking some of its holdings through vetted providers. Fidelity, ever the showman, plans to list shares on the Cboe BZX Exchange, though the ticker symbol remains a tantalizing mystery. Shares will be created and redeemed in bulk—also known as baskets—by authorized participants using either SOL or cash. 🤑

The daily net asset value (NAV) will be calculated using the same index method applied to SOL pricing. The filing reveals an annual sponsor fee tied to the fund’s SOL assets, though the percentage is a closely guarded secret. This fee will cover most standard operating expenses, except for unusual costs and a separate staking-related fee paid to the custodian from staking rewards. 🤫

To kick things off, a sponsor affiliate purchased a single “Seed Share” to establish the fund. The trust, in a nod to its avant-garde nature, is not registered under the Investment Company Act of 1940, meaning investors won’t receive the same regulatory protections as traditional mutual funds or ETFs. But who needs protection when you have style? 🌟

The SEC must still give the green light before the show can go on. Fidelity, ever the savvy player, has labeled the trust an “emerging growth company,” allowing it to follow scaled-back reporting rules at first. It’s worth noting: Fidelity isn’t the only one in the spotlight. A wave of heavy hitters has joined the fray, with SOL ETF filings pouring in from Vaneck, 21shares, Bitwise, Grayscale, Canary Capital, and Franklin Templeton. The stage is set for a grand performance! 🎭

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2025-06-14 02:57