Fidelity’s Solana ETF Filing Update Sparks Approval Frenzy - Crypto Markets Brace for Impact

Wall Street's crypto embrace accelerates as Fidelity updates its Solana ETF filing—regulatory green light appears imminent.

The Institutional Stamp of Approval

Fidelity just dropped updated paperwork for its Solana exchange-traded fund, sending shockwaves through digital asset markets. This isn't just another crypto product—it's one of America's largest asset managers betting big on Solana's blockchain technology.

Market analysts are scrambling to adjust their forecasts. The timing suggests regulators might finally be warming to alternative layer-1 networks beyond Bitcoin and Ethereum. Trading desks reported increased institutional inquiry volume within hours of the filing update.

Solana's native token SOL surged on the news, though typical Wall Street types will probably still call it 'speculative' while quietly allocating client funds. Because nothing says serious investment like waiting for a trillion-dollar asset manager to validate your thesis.

The real question isn't whether this gets approved—it's how quickly other fund managers will scramble to launch copycat products once Fidelity breaks the ice.

A shift toward automatic effectiveness

According to Eleanor Terrett, host of crypto in America, Fidelity’s decision mirrors a growing trend among issuers who are opting for automatic effectiveness under the 1933 Securities Act. Removing the delaying clause means the ETF can become effective automatically after a 20-day waiting period if the SEC takes no further action.

Terrett noted on X that this move follows Bitwise’s recent Solana Staking ETF (BSOL) launch, which used the same mechanism and successfully attracted $69.5 million in inflows on its first day. 

She added that VanEck and Canary Funds have also updated their Solana ETF filings, suggesting a coordinated push to list similar products around mid-November, pending approval from listing exchanges for their 8-A filings.

Interestingly, SEC Chair Paul S. Atkins appeared supportive of companies using the auto-effective route. While not commenting directly on Solana ETFs, Atkins said he was “pleased to see companies like MapLight using the 20-day statutory waiting period to go public,” commending the same legal mechanism that Bitwise, Canary Capital, and others have adopted for their Solana, HBAR, and Litecoin ETFs this week.

Inside Fidelity’s Solana ETF structure

Fidelity’s Solana Fund, which will trade on NYSE Arca as FSOL, is basically built to follow the real market price of Solana (SOL) using Fidelity’s own price tracking system called the Solana Reference Rate. The fund’s objective is to replicate SOL’s performance while also generating staking rewards, making it one of the first major U.S. ETFs designed to combine spot exposure with staking yield.

The filing names FD Funds Management LLC as the sponsor, CSC Delaware Trust Company as trustee, and State Street Bank as both transfer agent and cash custodian. Anchorage Digital Bank, BitGo Trust Company, and Coinbase Custody Trust Company will serve as custodians holding the fund’s SOL. 

The ETF can stake nearly all of its Solana tokens with reliable node operators to earn extra rewards for investors, while still keeping enough tokens available to handle withdrawals and regular costs.

SEC greenlights Grayscale’s Solana trust

Fidelity’s MOVE comes just a day after the SEC approved the Grayscale Solana Trust ETF for trading on NYSE Arca, marking the first officially regulated Solana investment product for U.S. investors. The approval lets big investors and financial institutions invest in Solana through a fully regulated setup, even though the SEC is still running with fewer staff because of the ongoing U.S. government shutdown.

With Grayscale leading the way and Fidelity now aligning with the automatic-effectiveness strategy, the competition to launch a U.S.-listed Solana ETF appears to be rapidly intensifying, signaling a pivotal moment for Solana’s mainstream financial adoption.

Also Read: Bitwise to Launch Solana ETF Featuring Staking Rewards